TDS is applicable at the time of withdrawal and also at the year end. 30% TDS is applicable on net winnings at the time of withdrawal and also at the year end.
Net winnings = Total withdrawals - Total deposits*
(* Total deposits = deposits in the financial year + opening balance of the financial year)
Any net winnings which have suffered TDS at the time of any earlier withdrawal would also be reduced while computing net winnings at the time of withdrawal.
Note: The TDS Policy is based on Finance Act, 2023. The Company reserves the right to update this policy based on applicable law.
You have a balance of ₹10,000 in your account on 25 Mar 2023 and withdraw it on 5 Apr 2023. On 1 Apr, 2023, ₹10,000 will be your opening balance (considered as deposit).
No TDS will be applicable as your net winnings are ₹0.
If your net winnings are ≤ ₹0, then TDS is not applicable.
If your net winnings are more than ₹0, 30% TDS applies on net winnings.