Tax Certificates will be issued within 1 month from the last date of filing TDS returns for every quarter.

Tax is calculated at the rate of 30% of Total Net Winnings at the time of Withdrawal. Let's take the above example for reference.
Here, the Net Winnings is ₹ 1000. Tax = 30% of ₹ 1000 = ₹ 300

Net Winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year.

Example -

Total Deposit  = ₹ 2000

Total Withdrawal = ₹ 3000

Here, Net Winnings = Total Withdrawal - Total Deposit

= ₹ 3000 - ₹ 2000

Net Winnings = ₹ 1000

Tax will be deducted on Net Winnings at the time of withdrawal or on 31st March (i.e. at the end of the Financial Year). If tax is deducted on positive Net Winnings on withdrawals, tax will not be deducted again on the same Net Winnings on 31st March.

If your total withdrawal is less than your deposit, no tax will be deducted. Example -

Total Deposit = ₹ 4000

Total Withdrawal =  ₹ 2000

Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 2000 - ₹ 4000

Net Winnings = - ₹ 2000

As Net Winning is negative, there will be no tax deduction.

Let's consider the following table as an example -
Opening A/c Balance as on 1st April 2024 = ₹ 1500
Total Deposit = ₹ 2000
Total Withdrawal = ₹ 3000
Tax is deducted on Net Winnings.
At the start of the Financial Year (1st April 2024), if there's an Opening Balance, Net Winnings is calculated as
= (Total Withdrawals) - (Total Deposits) - (Opening Balance)
= ₹ 3000 - ₹ 2000 - ₹ 1500
= - ₹ 500
As the Net Winning here is negative, there will be no tax deduction. And so, your withdrawal amount post tax deduction would be ₹ 3000 - ₹ 0 = ₹ 3000

TDS stands for 'Tax Deducted at Source' which we are legally obliged to deduct tax at source (“TDS”) at the time of withdrawal or the end of the Financial Year.

As per the Finance Bill passed by the Govt. of India, new tax laws are applicable on Online Gaming apps from April 1st, 2023. As per the law, Platforms offering Online Games are required to deduct tax at source (“TDS”) at the time of withdrawal or the end of the Financial Year. TDS shall be levied at the rate of 30% for all the net winnings of a Player. Here, net winnings shall mean the difference between all winnings and the entry fee paid by a Player for a year.

If there is a tax liability at the time of withdrawal, the tax will be deducted on net winnings. Other than this, if there is a pending tax liability at the end of the financial year, the balance amount will be deducted from the player’s wallet.