Tax Ledger Reset

As per Section 194BA of the Income Tax Act, 1961 the TDS needs to be deducted on Net Winnings lying in the closing balance as on 31st March of the financial year.

Towards the end of each Financial Year, your ledger gets reset for next year's Financial Year for taxation purposes.

This year with the introduction of auto TDS deduction, TDS will be applicable on net winnings withdrawn any time before 31st March'24. Your withdrawable amount will remain the same, whether you choose to withdraw or keep the balance in your CB Wallet.

The TDS @30% shall be computed on net winnings at the time of withdrawal or the winnings lying in the closing balance as on 31st March of the financial year

See how this is calculated?

Example 1:

  • Total Withdrawals (in FY 23-24) (A): ₹40,000
  • Total Deposits (in FY 23-24) (B): ₹20,000
  • Opening Balance (Of FY 23-24) (C): ₹10,000
  • Closing Balance (at the end of 23-24) (D): ₹15,000
  • Net Winnings Withdrawn in FY'24 (E): ₹15000
  • Net Winnings (A+D) - (B+C+E): ₹10000

Example 2:

  • Total Withdrawals (in FY 23-24) (A): ₹7,500
  • Total Deposits (in FY 23-24) (B): ₹5,000
  • Opening Balance (Of FY 23-24) (C): ₹0
  • Closing Balance (at the end of 23-24) (D): ₹6,000
  • Net Winnings Withdrawn in FY'24 (E): ₹2,500
  • Net Winnings (A+D) - (B+C+E): ₹6,000

Definition of terms:

  • - Balance (excluding bonuses and rewards balance): The total funds available in the account not including any bonuses and rewards balance
  • - Non-Taxable Withdrawal Ledger: A record of amounts that can be withdrawn without being subject to tax
  • - TDS (30%) on Net Winnings: The tax deducted at the source on the net winnings from the account

Terms & conditions:

  • Disclaimer 1: The above-mentioned information is a Company’s View, please consult a professional or expert on the aforesaid matter before filing your Income Tax Return
  • Disclaimer 2: The Winners shall be responsible for payment of any other applicable taxes, including but not limited to, income tax, gift tax, etc. in respect of the Net Winnings
  • Disclaimer 3: CardBaazi shall not in any manner be responsible for users' individual tax matters

FAQ's

As per Section 194BA of the Income Tax Act, the TDS needs to be deducted from the net winning balance at the end of the financial year i.e. 31st March’24. This adheres to the Tax provision.

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