As per latest government guideline for online fantasy sports, a TDS will be deducted at 30% of your net winnings at the time of withdrawal
Here are few answers of your questions regararding tax calculation to be done at the time of withdrawal.
Does SIXER 11 deduct tax on winning?
No! Your winnings will be credited as-is.
As per the new TDS law, effective 1st April 2023, TDS will be deducted at 30% of your net winnings at the time of withdrawal.
Net winnings are defined as the difference between your gains and spend on SIXER 11.
Taxable amount (Net winnings) = A - B - C - D
Where,
A is: Total Withdrawals including current withdrawals
B is: Total Deposits
C is: Opening balance at FY beginning
D is: Amount on which TDS was deducted till the date
Example 1:
Let's assume you have
Total deposit: ₹500 (B)
The total amount on which you paid taxes: ₹0 (D)
Opening balance at the FY beginning: ₹0 (C)
Total winning + withdrawal amount: ₹ (1000 + 0) (A)
At the time of withdrawal:
Net winning
= A-B-C-D
= (1000 + 0) - 500 - 0 - 0
= 1000 - 500
= ₹500 (where 30% tax applicable)
Example 2:
Let's assume you have
Total deposit: ₹1200 (B)
The total amount on which you paid taxes: ₹500 (D)
Opening balance at the FY beginning: ₹0 (C)
Total winning + withdrawal amount: ₹ (1500 + 1000) (A)
At the time of withdrawal:
Net winning
= A-B-C-D
= (1500 + 1000) - 1200 - 0 - 500
= 2500 - 1200 - 500
= ₹800 (where 30% tax applicable)
Example 3:
Let's assume you have
Total deposit: ₹1000 (B)
The total amount on which you paid taxes: ₹0 (D)
Opening balance at FY begning: ₹100 (C)
Total winning + withdrawal amount: ₹ (2100 + 0) (A)
At the time of withdrawal:
Net winning
= A-B-C-D
= (2100 + 0) - 1000 - 100 - 0
= 2100 - 1000 - 100
= ₹1000 (where 30% tax applicable)
Note: The extra instant cash received during the deposit is tax-free!