The new Govt Tax (TDS) law, as defined in the Income Tax Act, has been in effect since 1 April 2023. According to the law, 30% of your taxable amount (Net Winnings) is deducted as TDS on withdrawal.
How is taxable amount calculated for the financial year (FY)?
The taxable amount is defined as the difference between your withdrawals and deposits in the FY. Here’s how the taxable amount is calculated:
- A = Total withdrawals (including current withdrawal amount)
- B = Total deposits
- C = Opening balance (deposit + winnings) at FY beginning
- E = Amount on which TDS was deducted till date
1 April to 31 March is considered a financial year (FY).
Raj has ₹3,000 opening balance and makes his 1st withdrawal of ₹20,000 in the FY.
| Previous withdrawal | ₹0 |
| Total deposits | ₹10,000 |
| Current withdrawals | ₹20,000 |
| Current winnings | ₹35,000 |
| Total withdrawals A | ₹20,000 |
| Total deposits B | ₹10,000 |
| Opening balance (deposit + winnings) C | ₹3,000 |
| Amount on which TDS was deducted till date E | ₹0 |
| Taxable amount A - B - C - E | ₹7,000 |
| 30% Govt Tax (TDS) applicable | ₹2,100 |
| Withdrawal after Govt Tax (TDS) | ₹17,900 |
Raj deposits ₹15,000 and makes the 2nd withdrawal of ₹10,000 in the FY.
| Opening Balance | ₹3,000 |
| Total deposits | ₹10,000 (previous) + ₹15,000 (current) |
| Current withdrawals | ₹10,000 |
|
Total withdrawals A ₹20,000 (previous) + ₹10,000 (current) |
₹30,000 |
|
Total deposits B ₹10,000 (previous) + ₹15,000 (current) |
₹25,000 |
| Opening balance (deposit + winnings) C | ₹3,000 |
| Amount on which TDS was deducted till date E | ₹7,000 |
| Taxable amount A - B - C - E | ₹0 |
| 30% Govt Tax (TDS) applicable | ₹0 |
| Withdrawal after Govt Tax (TDS) | ₹10,000 |
Example 1(a): Priyanka has ₹0 opening balance and makes the 1st withdrawal of ₹10,000 in the FY.
| Opening Balance | ₹0 |
| Previous withdrawals | ₹0 |
| Total deposits | ₹15,000 |
| Current withdrawals | ₹10,000 |
| Total withdrawals A | ₹10,000 |
| Total deposits B ` | ₹15,000 |
| Opening balance (deposit + winnings) C | ₹0 |
| Amount on which TDS was deducted till date E | ₹0 |
| Taxable amount A - B - C - E | ₹0 |
| 30% Govt Tax (TDS) applicable | ₹0 |
| Withdrawal after Govt Tax (TDS) | ₹10,000 |
Example 1(b): Priyanka didn’t deposit any money and now makes the 2nd withdrawal of ₹7,000 in the FY.
| Opening Balance | ₹0 |
| Previous withdrawals | ₹10,000 |
| Total deposits | ₹15,000 (previous) |
| Current withdrawals | ₹7,000 |
|
Total withdrawals A ₹10,000 (previous) + ₹7,000 (current) |
₹17,000 |
| Total deposits B ` | ₹15,000 |
| Opening balance (deposit + winnings) C | ₹0 |
| Amount on which TDS was deducted till date E | ₹0 |
| Taxable amount A - B - C - E | ₹2,000 |
| 30% Govt Tax (TDS) applicable | ₹600 |
|
Withdrawal after Govt Tax (TDS) ₹7,000 - ₹600 |
₹6,400 |
Example 1(c): Priyanka deposits ₹5,000 and makes the 3rd withdrawal of ₹15,000 in the FY.
| Opening Balance | ₹0 |
| Previous withdrawals | ₹17,000 |
| Total deposits | ₹15,000 (previous) + ₹5,000 (current) |
| Current withdrawals | ₹15,000 |
|
Total withdrawals A ₹17,000 (previous) + ₹15,000 (current) |
₹32,000 |
|
Total deposits B ₹15,000 (previous) + ₹5,000 (current) |
₹20,000 |
| Opening balance (deposit + winnings) C | ₹0 |
| Amount on which TDS was deducted till date E | ₹2,000 |
| Taxable amount A - B - C - E | ₹10,000 |
| 30% Govt Tax (TDS) applicable | ₹3,000 |
|
Withdrawal after Govt Tax (TDS) ₹15,000 - ₹3,000 |
₹12,000 |
If you have not withdrawn your Net Winnings for the Financial Year yet, applicable TDS will be deducted from your Dream11 account at the end of the Financial Year.
How will it be calculated?
- A = Total withdrawals in the FY
- B = Total deposits in the FY
- C = Opening balance (Unused Deposits + Winnings) at the beginning of FY
- E = Amount on which TDS has been deducted in the FY
- D = Closing Balance (Current Balance at the end of the Financial Year, including Unused Deposits and Winnings)
Let’s look at some examples to understand it better:
1. Raj had withdrawn ₹5,000 of his Winnings
| Total withdrawals A | ₹5,000 |
| Total deposits B ` | ₹10,000 |
| Opening balance C | ₹0 |
| Amount on which TDS has been deducted E | ₹0 |
| Closing Balance D | ₹20,000 |
Raj’s taxable amount (Net Winnings) at the end of the Financial Year = ₹(5,000 - 10,000 - 0 - 0 + 20,000) = ₹15,000
So Raj’s applicable TDS is 30% of ₹15,000 = ₹4,500
2. Mita had not withdrawn any of her Winnings
|
Total withdrawals A |
₹0 |
|
Total deposits B |
₹20,000 |
| Opening balanceC | ₹5,000 |
| Amount on which TDS has been deducted E | ₹0 |
| Closing Balance
D ₹15,000 + ₹15,000 |
₹30,000 |
Mita’s taxable amount (Net Winnings) at the end of the Financial Year = ₹(0 - 20,000 - 5,000 - 0 + 30,000) = ₹5,000
So Mita’s applicable TDS is 30% of ₹5,000 = ₹1,500
No, TDS will be deducted on the taxable amount on every withdrawal and in case of no withdrawals TDS will be deducted from your closing balance at the end of every financial year.
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Transactions TDS
Click on the transaction for which you want to see the details.
You can check out the detailed Govt Tax (TDS) breakup and download the Govt Tax (TDS) certificate at the end of each quarter.
No Govt Tax (TDS) will be applicable in case of net loss at the time of withdrawal or at the end of the financial year.
Don’t worry; you can claim your Govt Tax (TDS) refund when filing your Income Tax Returns (ITR) for that financial year. Make sure to download your TDS certificates from the My Transactions section of the app at the end of each quarter.