TDS- Tax Deducted at Source on every online gaming app which will be effective from the 1st of April 2023. This will impact every cricket fans who are playing fantasy sports. Every gaming platform will deduct the 30% tax if your winnings are more than Rs.10,000 in a financial year.
In some states of India, fantasy and online gaming apps are considered gambling. On 9th February letter to the Project Management Office (PMO) requesting not to indicate online gaming and fantasy with gambling.
New TDS Rule in Fantasy Sports
This will impact problems for gamers who are depending on online gaming apps like rummy, poker, fantasy apps, horse racing, and other casino games. Every gamer has to pay 30% TDS in their winning amount.
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For example, if you paid a contest entry fee of Rs.500 and if you won Rs.20,000. Then, TDS will deduct Rs.5,850 for Rs.19,500. Your contest fees will be not counted in the winning amount so only profits will be considered for TDS. In Rs.20,000 you will get the remaining amount of Rs.13,650 in your personal bank account. This is considered only if you exceed Rs.10,000 in a financial year.
What is TDS in Fantasy Sports
TDS aim is to collect tax from every source of income. The person who will get the profits by playing online games and when they exceed Rs.10,000 in a financial year they must need to pay the TDS, which will be credited to the Central Government account.
TDS will be deducted from every fantasy game like Dream11, MyFab11, MPL, Vision11 and many 100+ fantasy games, not only fantasy sports, if you play ludo or any other small games for online income then also Income Tax Department will deduct the TDS on your winning amount.
Frequently Asked Questions
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, TDS will be deducted 30% for every fantasy winner.
Can we claim Fantasy Sports TDS?
Yes, You can claim the TDS, this is only eligible when filing your income tax returns (ITR) for the financial year.