How is tax calculated on 'Net Winnings'?
Net Winnings is the difference between the total amount withdrawn and the total amount deposited in a financial year. Example -
| Total Deposit | Total Withdrawal |
| ₹ 2000 | ₹ 3000 |
Here, Net Winnings = Total Withdrawal - Total Deposit
= ₹ 3000 - ₹ 2000
Net Winnings = ₹ 1000
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
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