Won Big on Dream11? Know How Much Tax You'll Pay on ₹1 Crore Winnings

The Indian Premier League (IPL) isn’t just a cricketing festival anymore — it’s also a money-making opportunity for millions through fantasy gaming platforms like Dream11, MPL, and My11Circle. As the craze of virtual cricket leagues intensifies, users are investing in creating fantasy teams hoping to win big. But here’s the catch: any winnings you make through these apps come with tax liabilities.

If you’re among the lucky few to win huge sums — say ₹1 crore — on Dream11, it’s essential to understand how much tax you’ll actually pay. Let’s break it down for you.

Tax Rules for Fantasy Gaming Income in India

As per the Income Tax Act Section 194BA, which came into effect from April 1, 2023, 30% TDS (Tax Deducted at Source) is levied on all net winnings from online gaming platforms, including Dream11. Unlike earlier when tax was deducted only if the winning exceeded ₹10,000, the limit has now been removed entirely.

So whether you win ₹500 or ₹50 lakh, a flat 30% tax is deducted by the platform before crediting the amount to your bank account.

Section 115BBJ: Your Gaming Income Is Taxable

Your earnings from fantasy sports apps like Dream11 are considered "Income from Other Sources" and are taxable under Section 115BBJ of the Income Tax Act. These earnings do not qualify for regular tax slab benefits, exemptions, or deductions (such as 80C).

This means, no matter your total income, 30% tax will apply directly on your winnings from fantasy apps.

How Much Tax on ₹1 Crore Dream11 Winnings?

Suppose you hit the jackpot and win ₹1 crore on Dream11. Here’s what will happen:

• ₹30 lakh (30%) will be immediately deducted as TDS by Dream11 before the amount is credited to your account.

• You will receive the remaining ₹70 lakh in your bank account.

• Later, when filing your Income Tax Return (ITR) in July, you must declare this ₹1 crore as part of your income. You may be liable to pay additional surcharge or cess, depending on your total taxable income for the year.

So, even though TDS is already deducted, your final tax liability may increase, especially if your total income crosses the surcharge thresholds.

Smaller Winnings – What About Them?

If your winnings are lower — say a few thousand rupees or under ₹10 lakh — the same 30% TDS applies. However, if the total amount won in a financial year is below ₹50,000, some platforms may still credit the full amount before deducting TDS later during payout processing. Either way, you still have to report these earnings in your ITR.

Don’t Forget to File Your ITR

Whether you win big or small, you’re still required to file your Income Tax Return and disclose the winnings. If you don’t, you may face penalties or even be marked a tax defaulter by the Income Tax Department.