A: As per the current tax regulations, the Income Tax Act regulations are applicable on all Cash withdrawals. At the time of withdrawal, a TDS of 30% is deducted from the user's net winnings. This means, the player will receive an amount only post the applicable tax is deducted into their Bank account.
Example:
As an example, A player deposits ₹10,000, and utilizes ₹2,000 of that to play a game. He wins ₹15,000. Thus the Cashier Balance will now be ₹23,000 of which ₹13,000 is their Net Winnings + ₹10,000 their previous deposit.
The player requests for a withdrawal of their entire total balance of ₹23,000. As per the TDS laws, no amount will be withheld on the deposit amount of ₹10,000, no tax will be withheld, and the player will be refunded these unused funds.
The remaining winning amount of ₹13,000, is subject to 30% withholding tax, which will be applicable before the payment is made to the player. Therefore 30% of ₹13,000, i.e., ₹3,900 will be deducted as taxes and ₹19,100 will be credited to the player’s account.