TDS on Online Winnings!!

Posted on Nov. 15, 2023, 10:21 a.m.
by Vilas Shetty

"All winnings from online games are taxed at 30% flat rate as speculative income."

Also, as per section 194BA TDS has to be deducted at 30% on your full earning.
But there was no clarity as to what value will the TDS be deducted.

Finally CBDT has issued a circular :

Winning value on which TDS will be deducted is = [ Withdrawn amt ] - [ Net Deposits + Opening Balance ]
So if you withdraw Rs. 5000 & had deposited Rs. 1000 to win the same, you tax will be on Rs. 4000 (5000-1000)