TDS Policy

Till 31st March, 2023, TDS has been deducted on the user’s winning amount of Rs.10000/- and above. From 1st April, 2023, new TDS rules have been in place. With reference to the latest TDS Rules effective from 1st April, 2023, the following changes have been made on DreamHousie.
TDS will be deducted on the user’s withdrawal amount and not on the user’s winning amount.
The withdrawal amount will be subject to 30% TDS, calculated on the user’s net winnings. Thus, the user will get the complete winning amount in the Winnings and TDS will be deducted only when the user withdraws.
User’s Net Winnings during the financial year April to March will be calculated by considering the following transactions:
User’s total winnings
User’s total deposit
Amount withdrawn by the user to date
TDS paid by the user to date
User’s total outstanding amount in the Winnings as on the last day of the financial year. In this case, the user’s current balance as of 31st March of that Financial Year will be subject to TDS, and the remaining balance will be carried forward to the next Financial Year.

TDS Calculation

The TDS will be charged on Net Winnings, the formula for which will be:
Net Winnings = Total Withdrawal (Made in the FY including the current withdrawal transaction amount) - Total Deposit (made in the FY) - Opening balance as on 1st April 2023 (Deposit+Winning) - Amount on which TDS has been deducted w.e.f., 1st April 2023.
* FY - Financial Year starting from April and ending in March. For example, FY 2023-24 starts on 1st April 2023 and ends on 31st March 2024.

Illustrations:

Case 1: When User’s Net Winnings are More than Rs.0

Assumption: User’s opening balance on 1st April 2023 is Rs.0 and no TDS has been deducted to date since 1 April 2023.

Case 2: When User’s Net Winnings equal to Rs.0

Assumption: User’s opening balance on 1st April 2023 is Rs.0 and no TDS has been deducted to date since 1 April 2023.

Case 3: When TDS has been paid in the FY

Assume, the user has already paid a TDS of Rs.3000 on the net winnings of Rs.10000 in the current FY.

Since Net Winnings up to Rs. 10000 have already been taxed, no TDS will be deducted from the User’s Net Winnings till it becomes greater than Rs.10000.

Case 4: When User’s Net Winnings Have Reduced after TDS Payment

Assume, the user has already paid a TDS of Rs. 1500 on the Net Winnings of Rs.5000 in the current FY. After paying the TDS of Rs. 1500, the user has made a deposit of Rs.2000.

In this case, the user’s net winnings have reduced from Rs.5000 to Rs.3000. Since the user has already paid a TDS of Rs.1500, and the applicable TDS on Rs.3000 (new net winnings) is Rs.900. Thus, the user can claim in the refund of the excess TDS paid while filing the annual income tax.

Case 5: When the User has Balance in the Winnings at the End of the FY

Assume, the user has already paid a TDS of Rs.3000 on the net winnings of Rs.10000 in the current FY and the user has a closing balance of Rs 12000 in his winnings on 31st March 2023.

Here, a TDS has already been paid on the Net Winnings of Rs.10000. Thus, the TDS calculation at the end of the FY will look like

Thus, the amount of Rs. 11400 will be carried forward to the next FY. The amount thus carried forward to the next FY will not be considered for TDS calculation in the new FY.