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Sec 194ba

The document explains how to calculate taxable winnings for a user named Ram Lal based on his withdrawals, deposits, opening balance, and previously taxed amounts. It presents three scenarios illustrating different withdrawal amounts and the resulting TDS deductions, with specific calculations provided for each case. Ultimately, it highlights that TDS will be deducted at the end of the financial year based on the user's taxable winnings.

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44 views2 pages

Sec 194ba

The document explains how to calculate taxable winnings for a user named Ram Lal based on his withdrawals, deposits, opening balance, and previously taxed amounts. It presents three scenarios illustrating different withdrawal amounts and the resulting TDS deductions, with specific calculations provided for each case. Ultimately, it highlights that TDS will be deducted at the end of the financial year based on the user's taxable winnings.

Uploaded by

Unknown
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Taxable Winnings = Total Withdrawals – Total Deposits in User’s Wallet –

Opening Balance – Previously Taxed Amount

For example, Ram Lal already has ₹500 in his wallet. He then deposits
₹400, plays games and wins ₹1500.

Scenario 1 – If Ram Lal wants to withdraw ₹800,


We calculated his taxable winnings as follows:

Taxable Winnings = Total Withdrawals – Total Deposits – Opening Balance


– Previously Taxed Amount

Total Total Opening Previously Taxed Taxable


Withdrawals Deposits Balance Amount Winnings
800 400 500 0 -100
In this case, his taxable winnings are less than ₹0, therefore there will be
no TDS deduction.

Scenario 2 – If Ram Lal now withdraws an additional ₹700,


We calculated his taxable winnings as follows:

Taxable Winnings = Total Withdrawals – Total Deposits – Opening Balance


– Previously Taxed Amount

Previously TDS
Total Total Opening Taxable
Taxed Deduction @
Withdrawals Deposits Balance Winnings
Amount 30%
1500 400 500 0 600 180
In this case, his taxable winnings are more than ₹0, therefore there will be
a 30% TDS deduction.

TDS deduction = 30% of taxable winnings (₹600)

= ₹180
Amount to credit in bank= Requested Withdrawal amount (₹700) – TDS
deduction (₹180)

= ₹520

Scenario 3 – Ram Lal TDS at the end of the financial year,


At the end of the financial year, 30% TDS will be deducted from the Wallet
account on your taxable winnings as per the Govt. policy.

Year-end Wallet Balance = ₹300

Calculation of his taxable winnings as follows:

Taxable Winnings (End Of Year) = End of Year Wallet Balance + Total


Withdrawals – Total Deposits – Opening Wallet Balance – Previous Taxed
Amount

Year
Previously TDS Net
End Total Total Opening Taxable
Taxed Deduction Wallet
Wallet Withdrawals Deposits Balance Winnings
Amount @30% Balance
Balance
300 1500 400 500 6000 300 90 210
In this case, his taxable winnings are more than ₹0, therefore there will be
a 30% TDS deduction.

TDS deduction= 30% of taxable winnings (₹300)

= ₹90

₹90 will be deducted from Rahul’s Rush account on 31st March.

Net Wallet Balance at the end of the financial year, i.e, 31st March = ₹210
(₹300-₹90)

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