Do we need to pay tax on money withdrawn from the fantasy cricket? Is this money counted as an income?

Fantasy Sport the "fskill" game is there for you to make you earn from thousands to lacs in a month or even on a particular day of cricket or football match. The amount earned cannot escape from the eyes of INCOME TAX DEPARTMENT OF INDIA.   

As the money won by Fantasy Sports comes under the Income Tax Act, 1961 Section 56(2)(ib) which says that "Income From Other Sources" are taxable. Also Finance Act 2001 amended as a whole about the description of games about taxation.

Under Section194B, winnings from certain sources are subject to TDS of 30%, these are as follows:

•  Lotteries and Lucky draws,
• Fantasy sports,
• Races,
• Card games, 
• Crossword puzzles,
• TV or electronic competitive game shows.

So basically if your prize money is more than ₹10000 and your total earnings are more than ₹ 2.5lakh there will be an amount which you have to pay as a TAX. However, the good thing is its not your headache to go into the process, the operator will do it all for you, thus the amount you receive will be after taxation, and a TDS certificate will be given along the final prize money.

To have a clear understanding of how it's done let's take an example which will vanish away all your doubts:

I CASE:

Total Earning =  ₹20,000 per month

From contest > ₹ 10,000

Total income = 12*20 = ₹ 2,40000 < ₹ 2,50000

Therefore, you don't need to pay any tax, so just RELAX and enjoy your prize money with NO TAX.

II CASE:

Total Earning = ₹ 30,000 per month

From contest < ₹10,000 (From single contest)

TDS on 10,000 AT 30% = ₹ 3000 

Remaining Money = ₹7000 + ₹20000 (From small leagues)

Therefore, 

Taxable Income from Other sources = ₹ 27,000* 12 =                                                                ₹ 3,24,000 > ₹ 2,50,000

Need To Pay On = ₹ 3,24,000 - ₹2,50,000 = ₹74000

30% TDS on 74000 = ₹74,000 * 30% = ₹22000

Remaining Money = ₹ 74000 - ₹ 22000 = ₹ 52000

Net Income After Tax Deduction = ₹ 2,50,000 + ₹ 52000 = ₹ 3,02,000

That's all, so basically you don't need to have a headache for it, as everything will be done on operator side the only thing that really should matter to you is winning in the game, play more win more, focus on making a winning TEAM using your "fskills" meaning skills of Analysis, Prediction, Brainpower and getting conclusion from players Statistics. 

Join platform, like KING11 which as easy user interface and prize money up to 5lac and much more in its bucket full of excitement and fantasy world.