The Indian Premier League (IPL) is back, and with it comes a golden opportunity for cricket fans to win real money through fantasy sports platforms like Dream11 and My11Circle. However, before you dive into building your dream team, it’s essential to understand the tax implications on your winnings.
According to Section 115BB of the Income Tax Act, fantasy sports winnings are subject to a flat 30% tax. Additionally, Tax Deducted at Source (TDS) under Section 194BA is applicable before you receive your winnings. Let’s break down how this taxation works and how much you actually take home.
How Much Tax is Deducted from Fantasy Cricket Winnings?
If you win cash prizes on Dream11, My11Circle, or any other fantasy gaming app, your winnings are subject to the following taxes:
- Flat 30% Tax: As per Section 115BB, any winnings from online games, including fantasy sports, are taxed at a fixed rate of 30%.
- TDS (Tax Deducted at Source): Under Section 194BA, the platform deducts TDS before crediting your winnings to your account.
- Tax on Non-Cash Rewards: If your prize includes gift vouchers, coupons, or other rewards, tax is levied based on their market value.
Example Calculation
Let’s say you win ₹10 lakh on Dream11 or My11Circle:
- 30% tax is deducted upfront = ₹3,00,000
- Amount you receive = ₹7,00,000
So, you don’t get the full amount you win; a significant portion goes to income tax.
When and How is TDS Deducted?
The tax is deducted at the time of payout, meaning:
- If you win a contest, the platform will automatically deduct TDS before crediting the prize money.
- You will receive a TDS certificate (Form 16A), which you can use to file your Income Tax Return (ITR).
Important Note: Fantasy sports earnings are not eligible for any exemptions or deductions under Section 80C or other tax-saving provisions.
What Are Fantasy Sports Platforms & How Do They Work?
Fantasy sports platforms like Dream11 and My11Circle allow users to:
- Create a virtual team of real-life players from an upcoming match.
- Pay an entry fee to participate in contests with cash prizes.
- Earn points based on real-life performance of the selected players.
- Win cash rewards if your team ranks high in the leaderboard.
These apps operate under skill-based gaming laws, which is why they are legal in India (except in a few states). However, they fall under "online gaming income", which attracts higher taxation.
Key Points to Remember
✅ Flat 30% tax applies to all winnings.
✅ TDS is deducted before payout, so you receive a lower amount.
✅ No tax benefits or exemptions apply to fantasy sports income.
✅ Prize money, vouchers, and coupons are all taxable based on their market value.
✅ Fantasy sports earnings must be reported in your ITR under “Income from Other Sources.”
Fantasy cricket can be an exciting way to enjoy IPL 2025 while making money. However, don’t forget about the tax rules before you celebrate your big win. Since platforms like Dream11 and My11Circle automatically deduct taxes, you should always check your TDS certificates and include these earnings in your income tax return (ITR).
Would you still play fantasy cricket despite the high tax deduction? Let us know in the comments!
