As per amendments to the Income Tax Act that came into effect on 1 April, 2023, Govt Taxes (TDS) are applicable on your Net Winnings.
TDS gets deducted on your Net Winnings every time you make a withdrawal.
If you have not withdrawn your Net Winnings for the Financial Year 2023-24 (1 April, 2023 to 31 March, 2024), the applicable TDS will be automatically deducted from your HalaPlay account on 31 March, 2024, 11:59 PM.
Example :
Total withdrawal in FY (A) – 1000
Total deposit in FY (B) – 500
Opening Balance at beginning of FY (C) – 100
TDS deducted so far in FY (E) – 120
Closing balance (D) – 1200
YOUR TAXABLE AMOUNT = A + D – B – C = 1600
YOUR APPLICABLE TDS = 30% of 1600 = 480
FINAL TDS = Applicable TDS – TDS Deducted so far = 480 – 120 = 360
Hence, as of March 31, 2024, your account balance will be reduced by 360 TDS, and the remaining balance of 840 will be used as a opening balance of 2024. For withdrawals from this amount in the upcoming fiscal year, there will be no TDS due.