The new TDS (Tax Deducted at Source) law, as implemented by the
government, will be in effect from 1 April 2023.
According to the law, TDS will be deducted at 30% of your net winnings
at the time of withdrawal.
What are net winnings?
Net winnings are defined as the difference between your gains and
spends. Net winnings* = Total winnings - (Total Entry -
CB/Discount)
(Note : subject to change as per the rules that are to be
notified under the Income Tax 1961)
How is this tax(TDS) getting deducted?
A user has a winning wallet balance of ₹50 at the beginning of the
financial/fiscal year and hasn't deposited any amount in 11Challengers
wallet. The user uses the existing balance to participate in fantasy
contests and has accumulated winnings of ₹200. Now the user requests a
withdrawal of ₹100 then the user's account has the following details:
Winnings in Wallet: ₹200
Net winnings : ₹200 - ₹50 = ₹150
Maximum TDS applicable on Net Winning : 30% of ₹150 = ₹45
Example (1) : Scenario A : TDS DEDUCTION ON 1ST WITHDRAWAL(₹100) :
If TDS applicable on first withdrawal(₹30) is less than Maximum TDS
applicable on
Net Winning(₹45)
TDS applicable on first withdrawal
₹30(30% of ₹100)
Withdrawal (after TDS)
Withdrawal amount - TDS applicable on first withdrawal
₹100 - ₹30
₹70
Remaining TDS to be PAID
₹15
Scenario B : TDS DEDUCTION ON 1ST WITHDRAWAL(₹100) :
If Remaining TDS to be PAID(₹15) is less than TDS applicable on
Remaining withdrawal amount(₹30)
TDS applicable on Remaining withdrawal amount: 30% of ₹100
₹30
Withdrawal (after TDS)
Withdrawal amount - Remaining TDS to be PAID
₹100 - ₹15
₹85
Example (2) :
TDS DEDUCTION ON LAST DAY OF THE YEAR or IF THE USER MAKES NO
WITHDRAWAL THROUGHOUT THE YEAR :
TDS applicable on Net Winning
30% of Net winnings
30% * ₹150(₹200 - ₹50)
₹45
Withdrawal (after TDS)
Total winnings in wallet - TDS applicable on Net Winning
₹200 - ₹45
₹155
What happens if I don’t make any withdrawals during the financial year?
The net winnings at the end of the financial year will be subject to TDS
at 30%, which will be deducted from your winnings balance.
Will my account balance, held till 31 March 2023, also get affected?
No, your account balance holdings before 1 April 2023 will not incur TDS
deduction as per the new update.
Is there any threshold amount above which the TDS will be deducted?
No, TDS will be deducted on net winnings on every withdrawal amount or
on net winnings at the end of every financial year.
What if I end up paying extra TDS?
Don't worry, you can claim your TDS refund when filing your Income Tax
Returns (ITR) for that financial year. Make sure to download your
TDS certificates from the My Transactions section of the app.
What bank account details do I need to provide for withdrawal / verification?
In order to successfully complete the withdrawal process, the user needs to provide certain information as a
part of identity verification. The user needs to provide the following bank account details: