Dream11 New TDS Rule – TDS- Tax Deducted at Source on every online gaming app which will be effective from 1st April 2023. This will affect all the cricket fans who are playing fantasy sports. Every gaming platform will deduct a 30% tax if your winnings exceed Rs 10,000 in a financial year.
Fantasy and online gaming apps are considered gambling in some states of India. On February 9, wrote a letter to the Project Management Office (PMO) requesting not to link online gaming and fantasy with gambling.
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Dream11 New TDS Rule 2023
This Dream11 New TDS Rule will affect the problems for Fantasy Sports & gamers who depend on online gaming apps like rummy, poker, fantasy apps, horse racing, and other casino games.
Every gamer has to pay 30% TDS on the amount of his winnings. For example, if you have paid Rs. 500 and if you have paid Rs. 20,000 won. Then, TDS will be deducted at Rs 5,850 for Rs 19,500.
Your contest fee will not be counted towards the winning amount hence only profit will be considered for TDS. In Rs 20,000 you will get a balance of Rs 13,650 in your personal bank account. It is considered only if you exceed Rs 10,000 in a financial year.
Net Winnings* = Total Winnings – ( Total Entry Fee – Cash Bonus/Discount )
What is TDS Rule in Fantasy Sports
The purpose of TDS is to collect tax from every source of income. The person who will get profits by playing an online game and when they exceed Rs 10,000 in a financial year, will have to pay TDS, which will be deposited in the account of the Central Government. TDS will be deducted from every fantasy game like Dream11, My11Circle, MyFab11, MPL, Real11, Vision 11, and many more 100+ fantasy games, not only fantasy games but also income tax department if you play ludo or any other small game for online income.
Can we claim Fantasy Sports TDS?
Yes, Fantasy Sports TDS You can claim the TDS, this is only eligible when filing your income tax returns (ITR) for the financial year.
How much tax do you pay on fantasy sports winnings?
As per the new rule of TDS, which is effective from 1st April 2023. As per the new rule, 30% TDS will be deducted for each fantasy winner.
Conclusion
That’s all about the new rule of TDS in fantasy sports For all the fantasy lovers who are playing big money in fantasy from today you have to pay 30% TDS to the income tax department and the amount will be directly deposited in the central Government Account. Here we have shared everything about the TDS rule for gamers.
