Dream 44 is an online gaming portal. Mr. Z is a user of this portal and he has a credit balance of 10,000 in his user account with Dream 44 as on…

(iii) As per section 194BA, on any income by way of winnings from any online game during the financial year, tax @30% is required to be deducted on the net winnings in the user account. Since there is a withdrawal on 1.2.2024, Dream 44 is required to deduct tax at source at the time of such withdrawal on the net winnings comprised in such withdrawal, as well as on the remaining amount of net winnings in the user account at the end of the financial year. Net winnings at the time of first withdrawal during the F.Y. i.e., on 1.2.2024 = 25,00,000, being amount withdrawn – (₹ 1,00,000, being non-taxable deposit made in the user account +10,000, being opening balance) = 23,90,000. Net winnings at the end of the financial year i.e., on 31.3.2024 = (₹ 25,00,000, being amount withdrawn +6,60,000, being closing balance) – (₹ 1,00,000, being non-taxable deposit made in the user account +10,000, being opening balance +23,90,000, being net winnings comprised in the earlier withdrawal) = 6,60,000.