Will my Opening A/c Balance be considered if I want to make a withdrawal at the start of the new Financial Year (April 2023)?
Let’s consider the following table as an example -
Opening A/c Balance
as on 1st April 2023
|Total Deposit||Total Withdrawal|
|₹ 1500||₹ 2000||₹ 3000|
Tax is deducted on Net Winnings.
At the start of the Financial Year (1st April 2023), 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