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How does the referral wallet work?

According to the exchange circular (PDF), beginning August 15, 2024, brokers are prohibited from paying referral commissions to individuals not registered as an Authorised Person (AP). As a result, Zerodha will not be permitted to pay the 10% brokerage generated by referrals through the referral programme from August 25, 2024, until the exchange provides further clarification. However, 300 reward points will still be given for each successful referral.

The earnings from the referral program are updated in the referral wallet. The referral earnings for every month are only updated in the first week of the following month. For example, the referral earnings for January are updated in the referral wallet in the first week of February. To learn more about the brokerage sharing program, visit zerodha.com/z-connect/zerodha/zerodha-associate-program/referrals-just-got-more-rewarding.

For the first withdrawal request to be processed, a minimum of 1 referral and referral earnings of ₹1,000 are required. Following this, each withdrawal must be a minimum of ₹1,000.

Example scenario

To withdraw the first referral earnings in February as of January 31st, 1 successful referral and referral earnings of ₹1,000 are required.

Referral payouts will be made after a Tax Deduction at Source (TDS) of 5% or as per the applicable income tax law. As of 31 March, any unclaimed amount in the referral wallet will be reported to the ITD and then carried forward to the next financial year. This will be reflected in Form 26AS. For example, ₹1,000 is unclaimed as of 31 March 2025. This amount will be reported to the ITD in FY24-25 and will be carried forward as the opening balance for FY 25-26.

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