Dream11, the popular online fantasy sports platform, will be subject to a new Tax Deducted at Source (TDS) law starting 1st April 2023. The new law mandates that 30% tax as TDS will be deducted on net winnings at the time of withdrawal from the platform.Dream11 New 30% Tax Deduction Rule 2023
Dream11 New Tds Rule 2023
This new law is part of the government’s efforts to regulate online gambling and ensure that appropriate taxes are being paid on income generated through these platforms. According to the government, online gambling platforms such as Dream11 have been growing at an unprecedented rate, and there has been a need to regulate these platforms to ensure that they are not being used for money laundering or other illegal activities.
Under the new law, net winnings are defined as the difference between total winnings and the total entry amount minus any cash bonus or discount. This means that if a player wins Rs. 10,000 on Dream11 but has invested Rs. 7,000 in total entry fees and received a cash bonus of Rs. 1,000, their net winnings will be Rs. 2,000, and 30% TDS will be deducted on this amount at the time of withdrawal.
In case there is no withdrawal made during the entire financial year, TDS will be deducted from the net winnings as of 31st March 2024. This means that if a player has won Rs. 10,000 during the financial year but has not made any withdrawals, TDS will be deducted from their net winnings as of 31st March 2024.
It’s important to note that these rules are subject to change as per the rules that are to be notified under the Income Tax Act, 1961. Dream11 has also stated that they are in the process of evaluating the new law and will provide further information to their users as and when required.
In conclusion, the new TDS law applicable to Dream11 effective 1st April 2023 is a step towards regulating online gambling and ensuring that appropriate taxes are being paid on income generated through these platforms. Players on Dream11 should be aware of this new law and plan their withdrawals and investments accordingly.
Dream11 has become a popular platform in India, with over 100 million registered users. The platform allows users to participate in various fantasy sports games and win cash prizes. However, the new TDS law may result in players earning significantly less than before, as 30% of their net winnings will be deducted at the time of withdrawal.
Many users have expressed their disappointment with the new law, stating that it will make it difficult for them to earn a significant amount of money on the platform. Some have even suggested that they may stop playing altogether due to the reduced earnings.
However, it’s important to note that the new law is aimed at regulating online gambling and ensuring that appropriate taxes are being paid on income generated through these platforms. The government has stated that the aim is not to discourage users from participating in these platforms but to ensure that they are being used in a legal and transparent manner.
Dream11 has also stated that they are evaluating the new law and are committed to complying with all regulations. The platform has stated that they will continue to provide users with a fair and transparent gaming experience and will work towards ensuring that the new law does not negatively impact the overall user experience.
In conclusion, while the new TDS law applicable to Dream11 may have a short-term impact on the earnings of players, it is a step towards regulating online gambling and ensuring that appropriate taxes are being paid on income generated through these platforms. Dream11 users should be aware of the new law and plan their withdrawals and investments accordingly.