Latest news with #My11Circle
Mint
30-05-2025
- Entertainment
- Mint
Fantasy leagues are making cricket viewing transactional
Have you made a Dream11 team?" That question surprised me, coming from one of my closest friends, one with whom I talk far more about culture and cinema, than cricket. As far as I knew, he's never been into the sport. Yet here I see him assiduously making teams, looking up pitch statistics, with daily alarms on his phone to signal announcements of lineups. I find this fascinating, and remain utterly foxed by it. He isn't alone. When watching with friends nowadays I hear fewer full-throated roars and groans. Instead, I hear mutterings. Secretive, shifty, mutterings. 'I wish Klaasen had caught that one," 'Somebody should hit Bishnoi for a few," 'Miller is my vice-captain, he better make a 50." Also read: Why it's important to give the kids a glimpse of your younger self Cricket has always been community. We bled blue or green or yellow, depending on where we were born, but bleed we did—in unison with our fathers and cousins, our flatmates and chai-wallahs. Admittedly I'm not the rabid cricket viewer I once was. Once Sachin Tendulkar walked off the Wankhede in 2013, I hung up my metaphorical boots. No cover drive could taste the same. Yet when I watched Rishabh Pant in 2021, fearlessly conquering the Gabba and loftily punching back Josh Hazlewood, something stirred. It stirred again when I saw Pat Cummins silence a country by defeating an unbeaten Indian side at the 2023 World Cup final. This is theatre, this is cricket. The game, however, is changing. Fantasy leagues—Dream11, MPL, My11Circle—are doing to cricket what reels and memes are doing to cinema: atomising it. Instead of supporting an actual team, we support data points in opposition. We may cheer for a decision against India because it means more points. A Chennai fan curses an M.S. Dhoni stumping because the rival batsman is on his team. The allegiance has shifted inward. This is not fandom. I see its appeal, of course. The rush of picking those that shine against all odds and balancing them alongside the ones that will consistently get you points. It's chance disguised convincingly as strategy. Every micro-performance is a tick or a scratch on your app's leaderboard. This gamification comes at a price. The players are now spreadsheets with limbs. The scoreboard is a stock-ticker. More than the countries or IPL teams we support, we are increasingly becoming beholden to our individual fantasy league teams. Our viewing experience is in danger of changing from a collective one to an individual one, where you only care about how those you've put in your team are faring, taking precedence over team loyalty and fanhood. This makes cricket viewing transactional. You don't watch a game; you work it. You grind it for points. You look up expected strike rates and recent fantasy form and head-to-head bowling matchups. You don't cheer a team as much as you audit it. This works perfectly for my buddy who doesn't remember crying over collapses against the West Indies or hasn't grown up scarred by Ricky Ponting, but for those of us who do, it feels surreal—even perverse—to watch cricket like this. It's moral whiplash. Wanting a batsman to score a 50 and also get bowled in the next over? Rooting for a bowler to take three wickets and still get smashed for 30? You're hedging joy against greed. Then there's the slippery slope of micro-transactional gambling. These apps are nearly free to enter. A bit for this match. A bit more for a bigger pool. Boost your winnings. Before you know it, the dopamine dependency kicks in like a slot machine. The margins are cruel. You might win ₹90 today and lose ₹200 tomorrow. But your team 'nearly" made it, right? So you try again. Just one more match. Just one more toss. What is this other than fishing needlessly outside the off-stump, again and again and again? I tried it once. I downloaded the app because that dedicated friend compelled me, and I slapped together a team for the price of a single rupee. I won back ₹49, which, by curious coincidence, is exactly what the app then nudged me to wager for the next round. A lucky taste to draw me back in. Instead, I took my 49x winnings, smiled, and deleted the app. (The house mustn't always win.) T20 leagues already resemble fast-food joints: convenient, ubiquitous, aggressively flavoured, and ultimately forgettable. A match ends and we swipe to the next. No one remembers a dead rubber. No one savours a single. We're looking for fireworks and forgetting the fires. This fantasy epidemic only highlights how disposable the game has gotten, forcing us to make our own entertainment. Even a dull game will get you points, hurrah. Triumph and defeat reduced to profit and loss. How depressingly prosaic. If our primary loyalty is to ourselves and our stats, then we are taking something collective and turning it solitary. We're trading love for leverage. Play along if you like, but be careful. If you start to care more for your fantasy XI than the one whose jersey you wear, something is deeply, deeply broken. You may still be entertained. You may even make some money (though you aren't very likely to). Yet this is a different game, and it's not quite cricket. Raja Sen is a Lounge columnist. Also read: French Open 2025: Who to watch for at Roland Garros
India Today
28-05-2025
- Sport
- India Today
Real money gambling: Addiction, debt, fraud, and a nation trapped
(NOTE: This article was originally published in the India Today issue dated June 2, 2025)It's a sweltering afternoon in Brahimpur in east Uttar Pradesh's Sultanpur district, but 35-year-old farmer Surya Pratap Singh seems oblivious to it. He is sitting beneath a neem tree, furiously tapping his phone screen. Around him, a few plastic chairs and a charpoy make up what is probably Brahimpur gram sabha's unofficial gaming lounge. The game of choice isn't played with dice or cards, it's all digital instead, be it ludo, fantasy cricket or online rummy. The stakes? They are very real. 'This has been our routine for years,' says Surya Pratap. 'No matter what I'm doing, I have to play. I need Rs 2,000-3,000 every day just to get by... I know I won't win. But I cannot stop.'advertisementSurya Pratap's addiction has cost him not just money but peace of mind, familial ties and self-esteem too. He has logged some 19,500 games on his app, often wagering thousands in a single round. On one particularly devastating day, he lost Rs 1.5 lakh, convinced that he was about to win it all back. 'I thought I was having a heart attack,' he recalls. advertisement Surya Pratap is but one symptom of the digital gambling epidemic sweeping through India—from rural Uttar Pradesh to urban Hyderabad, from farmers to professionals, from students to pensioners—driven by smartphones, cheap data, quick online payments and the 'gamification' of aspiration. According to a report by WinZO Games and the Interactive Entertainment and Innovation Council (IEIC), India's gaming market stood at $3.7 billion (Rs 31,500 crore) in 2024 and is projected to surge to $9.1 billion (Rs 78,000 crore) by 2029, growing at a blistering compound annual growth rate of 19.6 per cent. A separate estimate by Statista Market Insights puts India's online sports betting market alone at $2.19 billion (Rs 18,700 crore) in 2025. India now accounts for over 20 per cent of global gaming users and around 8.6 billion app downloads, more than the next two biggest markets—the US and Brazil—combined. The real driver of this growth? The phenomenon of Real Money Gaming (RMG), which contributes 86 per cent of industry revenue. Millions are staking money on outcomes every day on these online platforms—it isn't just about games anymore, they are now entire economic ecosystems unto themselves. Digital ludo, for instance, matches users, often with similar skill or stake levels, and lets them compete for the pooled-in entry fees. Similarly, fantasy cricket—think Dream 11, My11Circle et al—involves creating virtual teams of real players; users earn points and money based on actual match performances (see Major Online Players). The surge in RMG has not only fuelled widespread addiction, pushing many users into a debt trap, but also opened the door to more insidious threats: money laundering, cyber fraud and even terror financing. As this booming industry spirals beyond control, the government is beginning to take serious note. While several regulatory measures have been rolled out over the past few years, top officials in the Union ministry of home affairs (MHA) say the Indian Cyber Crime Coordination Centre (I4C) is now preparing a report recommending a new central law. The proposed legislation could bring the entire spectrum of online gaming, gambling, betting and lotteries under one federal framework—with provisions for steep fines and prison terms of up to three years for violations. THE SKILL-CHANCE MIRAGEThe legal framework for gambling in India remains anchored in the colonial-era Public Gambling Act of 1867, which distinguishes between 'games of skill' and 'games of chance'. The former—like rummy or fantasy cricket—are legal, while the latter, such as roulette or slot apps, fall in the ambit of gambling and are generally banned. In a 1957 ruling (State of Bombay vs R.M.D. Chamarbaugwala), the Supreme Court reinforced this principle, saying that only games where success is predominantly determined by skill can avoid being classified as gambling. That preponderance test continues to shape legal interpretations even in the online space, this divide has grown fuzzy. Platforms often promote themselves as skill-based to dodge regulation. Experts argue that even games requiring some level of skill can be manipulated with mechanisms like flashy visuals, near-misses and random rewards—known to trigger dopamine rushes akin to gambling.'Hope is a powerful thing,' says Surya Pratap, a sentiment echoed by mental health professionals. Dr Manoj Kumar Sharma, a professor of clinical psychology at the National Institute of Mental Health and Neurosciences (NIMHANS), Bengaluru, and coordinator of the SHUT (Service for Healthy Use of Technology) Clinic, says that many users initially engage with RMG platforms out of curiosity, but gradually slip into what is called the 'gambler's fallacy', or the hope that a win will follow a losing streak. 'People getting addicted are often driven by their financial or psychological needs, after seeing someone else win,' he says. 'They believe they can reverse their fortunes, and keep investing more despite mounting losses.'advertisementThe SHUT Clinic saw few such cases till 2017, says Dr Sharma. Now, at least one patient a month reports addiction to online gambling or high-risk trading. Advertisements glamorising 'big wins'—often with celebrity endorsements—only reel the victims in deeper. 'Such endorsements build a false sense of trust,' explains Dr Sharma. A 2022 study by the global consultancy KPMG supports this view, revealing that 40 per cent of young adults in India, aged 18-25, were influenced by such promotional content, with many coming to perceive online gambling as a safe, even lucrative, activity. THE EXTERNAL THREATA 2023 report by the Parliamentary Standing Committee on Finance warned that lax oversight is turning gaming portals into pipelines for terror financing, after the National Investigation Agency (NIA) traced laundered funds to extremist groups. Watchdog platforms such as the Global Internet Forum to Counter Terrorism also warn that extremist groups are using in-game chats and forums to recruit and radicalise vulnerable report by India's Financial Intelligence Unit (FIU) in 2022 pegged money flow through gaming platforms at Rs 2,000 crore, much of it untaxed and untraceable. Many illegal betting platforms also allow users to place bets using cash, bypassing the digital record entirely, according to a 2024 report by the Security and Scientific Technical Research Association (SASTRA) of Rashtriya Raksha University, Gandhinagar. In one high-profile case in 2022, the Enforcement Directorate (ED) seized Rs 17.82 crore in cash and over Rs 22 crore in Bitcoin from a platform called E-nuggets, allegedly operated by Chinese nationals. According to Ananay Jain, director at risk advisory firm Grant Thornton Bharat, foreign-controlled apps, especially those from China, raise national security concerns due to potential ties with surveillance networks and data avenue is proving a godsend for other devilish deeds as well. 'As online gaming and betting platforms proliferate in India, so do the risks of financial fraud, data theft and phishing scams,' says Jain. In a 2022 CERT-In report, online financial frauds linked to gaming platforms were found to have surged by 55 per Sharma, a research fellow at the Union ministry of defence's think-tank MP-IDSA, points to the 2024 Fiewin case—a gaming app run by Chinese operators that laundered nearly Rs 400 crore from Indian users—as a wake-up call. 'The app used false promises of high returns to deceive users,' says Sharma. The ED's probe into Fiewin revealed a web of international transactions routed through 'mule' accounts and cryptocurrency wallets—making detection and enforcement exceedingly jurisdictional grey zone these platforms operate in exacerbates the problem. Many are registered in tax havens like Malta, Cyprus and Curacao, well out of the reach of Indian regulators. They regularly violate multiple Indian laws, including the Foreign Exchange Management Act, Payment and Settlement Systems Act, Information Technology Act, and Prevention of Money Laundering Act (PMLA).The very foundation of what counts as legal or illegal gaming remains blurred, says Kriti Singh, associate director and programme manager (online gaming) at The Dialogue, a tech policy think-tank. 'Despite some legal clarity, regulatory ambiguity has created an environment where offshore platforms thrive in the grey areas, often masquerading as skill-based games. This leaves consumers vulnerable to mental and financial harm,' she warns. 'A comprehensive national framework that clearly distinguishes between games of skill and games of chance is essential to protect users and increase accountability.' Jain agrees. 'We urgently need a SEBI-like regulator for gaming,' he says, 'one that mandates licensing, audits and public education to curb addiction.' Sharma weighs in, saying, 'Compliance with Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, such as publishing an Indian contact address and adhering to the 'purpose limitation' principle, is critical to preventing such abuses.' (Purpose limitation means personal data should be used only for the specific, legitimate purposes for which it was collected.) CRACKING THE WHIPResponding to the growing menace, the government has initiated a string of reforms. In December 2022, the Union ministry of electronics and information technology (MeitY) was appointed the nodal authority for online gaming. The ministry revised the IT Rules, 2021, in April 2023 to strengthen the regulation of online gaming intermediaries. Platforms must now conduct age verification, provide grievance redressal and comply with strict KYC (Know Your Customer) norms. Till February 2025, MeitY had also blocked 1,410 non-compliant websites/apps. Fresh measures introduced in March this year are designed to protect users from illegal gambling, data theft and addiction, while ensuring the industry remains accountable and addition, over the past two years, the government has imposed a 28 per cent Goods and Services Tax (GST) on the full value of bets, and a 30 per cent income tax on net winnings, aimed at both curbing casual gambling and ensuring financial transparency. The Centre is also working towards including RMG platforms under the PMLA, effectively classifying them as 'reporting entities'. When implemented, it would require these platforms to enforce stricter KYC norms, maintain detailed transaction records and report suspicious activity to the Nadu has gone a step further, rolling out detailed rules for its Prohibition of Online Gambling and Regulation of Online Games Act, 2022, in February this year. These mandate gaming curfews between midnight and 5 am, pop-up warnings after an hour of play and caps on user spending. States like Telangana, Karnataka and Andhra Pradesh have launched similar crackdowns to impose a blanket ban on RMG while Kerala tried to outlaw playing rummy for stakes. Most of these efforts have either stumbled in the courts or been circumvented by virtual private networks (VPNs)—a backdoor access to banned stricter measures have also driven many users toward offshore platforms that dodge Indian laws, helped along by the jurisdictional maze. While online gaming is a digital industry, transcending geographical boundaries, gambling is a state subject under the Constitution. Most states exempt games of skill from gambling restrictions. While Goa permits licensed physical casinos (games of chance), states like Nagaland, Sikkim and Meghalaya have introduced licensing frameworks specifically for online gaming. This mismatch complicates enforcement, leaving grey areas for platforms to MeitY took charge of online gaming in 2022, IT minister Ashwini Vaishnaw had called for 'a central law' to regulate the sector. The I4C under the MHA is now working in this direction. Government insiders claim that several 'giant' platforms are under the lens for flouting existing rules. Once a new law is passed, accountability could also extend to the celebrities and influencers who endorse such platforms. THE SELF-REGULATION PUSHTo its credit, the industry has begun some self-regulation. On March 10, key industry bodies—the Federation of Indian Fantasy Sports (FIFS), All India Gaming Federation (AIGF) and the E-Gaming Federation (EGF)—announced a 'Code of Ethics' (CoE), as a culmination of efforts initiated by the Advertising Standards Council of India (ASCI). The members of these bodies include popular platforms like Dream11, MyTeam11, Zupee, A23 and Junglee Games. The CoE is aimed at enforcing consistent standards of user safety across the industry through the implementation of responsible gaming and advertising policies. It also mandates annual third-party audits and comprehensive reporting mechanisms to ensure accountability and Landers, CEO of the AIGF, tells india today that one advantage of operating as a digital platform is the ability to monitor user behaviour. 'If we detect patterns of excessive use, we can step in and take preventive action,' he says, while also stressing that 'self-awareness and restraint from users are equally important'. According to Landers, only 15-20 per cent of users of these skill-based gaming apps engage in monetary transactions; most stick to low-denomination games. 'Serious losses are more often associated with illegal platforms,' he Shankar Jha, director of public policy at Zupee, which offers RMGs like ludo and trump cards, believes regulation is key to addressing the issue. 'The only way to address this imbalance is through regulations that separate legitimate skill gaming entities from illegal ones,' he says. In the absence of clear recognition, Jha argues, users are unable to distinguish legal operators—who 'promote responsible gaming'—from offshore betting and gambling the human toll of this epidemic is impossible to ignore. Many a time, the harmless-looking gaming apps become gateways to illegal betting apps—out of lack of awareness, financial need or sheer greed. On April 16, a 25-year-old MTech student in Hyderabad took his life after losing money in online betting, a grim reminder of the larger-than-life menace RMG the government's multi-pronged crackdown may rein in some abuses, enforcement remains a game of whack-a-mole. A Digital India Foundation report released on March 15 found that just four illegal betting platforms attracted a total of 1.6 billion visits in three months. Mirror sites, like those run by the Cyprus-headquartered sports betting giant PariMatch, alone contributed 266 million visits—dodging bans with ever-changing faster, smarter regulation, these platforms will keep thriving in the shadows. But the real battle isn't just shutting down rogue apps; it's changing the narrative—from addiction to awareness, from easy money to informed choice. Until then Surya Pratap, and millions like him, will remain prisoners of a costly to India Today Magazine
Time of India
18-05-2025
- Business
- Time of India
Dream11 and astrology apps earn over Rs 30,000 crore, but only 5 crore Indians invest for the future: Financial planner sounds alarm
India's smartphone-savvy generation is hooked on online gaming and digital astrology . From fantasy sports leagues and esports to horoscope apps and virtual astrology consultations, these platforms have captured millions of users. The revenue speaks volumes: gaming apps like Dream11 and My11Circle have pulled in ₹30,000 crore, while astrology apps such as Astrotalk have crossed ₹1,000 crore in earnings. Gurmeet Chadha , Managing Partner & CIO at Compcircle, recently pointed this out on X (formerly Twitter). He said, 'Dream 11, my11 circle & other gaming apps did 30000 cr revenue. Astrotalk & astrology apps 1000 cr+ revenue. 56 cr Indians r gamers largely in 18-30 age group. Hardly 5 cr Indians do SIPs. Imagine the potential...' This contrast between entertainment and investment is stark. — connectgurmeet (@connectgurmeet) 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like บ้านขนาดเล็กพร้อมห้องน้ำ ที่น่าสนใจในปี 2025 Visionary Echo อ่านเพิ่มเติม Undo Chasing predictions vs building the future Chadha highlighted a worrying trend among young Indians. 'We want to predict future on a daily-weekly basis but do not want to BUILD our future over long term,' he said. His words capture the dilemma perfectly. Daily horoscope checks and fantasy sports bring instant gratification, but commitment to long-term wealth creation remains weak. This mismatch raises questions about financial literacy and priorities among a generation with access to advanced technology yet reluctant to invest in their future stability. Live Events SIPs see growth, but investor caution grows The latest figures from the Association of Mutual Funds in India (AMFI) offer a nuanced picture. Systematic Investment Plans (SIPs) saw record contributions in April 2025, reaching ₹26,632 crore—a 3% increase from March's ₹25,926 crore. The total number of mutual fund folios also increased to over 236 million, reflecting rising interest. But the surge comes with a catch. The SIP stoppage ratio shot up to 75.63% for the fiscal year 2025. This means more than 514 lakh SIPs were discontinued, even as nearly 680 lakh new SIPs were registered. Since January, the number of SIP closures has exceeded new registrations—a reversal not observed in over two years. This points to growing caution among retail investors amid shifting market conditions. A different kind of SIP: A call for national security Chadha has been a vocal advocate of disciplined investing. But he recently suggested a new kind of SIP — one 'that should have nothing to do with stocks, mutual funds or returns.' Instead, he urged voluntary monthly contributions to the National Defence Fund. His proposal, made during a period of tense India-Pakistan relations, underscores a crucial truth: financial goals lose meaning without national security. This approach broadens the idea of investment beyond personal wealth to collective safety. The booming demand for quick entertainment and daily fortune-telling apps reflects a youthful urge for instant answers. But the slow, steady habit of building wealth through SIPs remains underdeveloped. Bridging this gap will require more than just numbers. It calls for shifting mindsets—encouraging young Indians to see long-term financial planning as equally essential as their digital pastimes. As the data shows, while interest in mutual funds is growing, many investors are still hesitant to commit long term. Encouraging steady investing habits alongside digital trends could help build a more financially secure future for India's youth. The challenge is clear: can India's young population balance their love for daily predictions with the discipline needed to build lasting wealth? The answer will shape the country's economic outlook for years to come.
Time of India
08-05-2025
- Business
- Time of India
Won money on Dream11, My11Circle? Know income tax rules for this casual income
Dream11 win: Winnings from lottery, online gaming, online sports betting, etc., are considered casual income for income tax purposes, as per tax experts. However, taxpayers are not aware of the tax rate applicable on casual income earned. Read on to know the latest income tax rules if money is earned from sports betting, and the penal consequences if it is not reported. Tired of too many ads? Remove Ads Earnings from sports betting and online gaming are casual income Tired of too many ads? Remove Ads Under which section are winnings from online gaming and sports betting taxed? Income tax rate for winnings from online games Can you claim any deductions on income in the form of winnings from online games? How are winnings from Dream11 and online games taxed? Tired of too many ads? Remove Ads Penalty for not disclosing casual income in ITR The Indian Premier League (IPL) is currently underway, and many people are earning money through sports betting apps, such as Dream11 , My11Circle, etc. However, few individuals are aware of the income tax rules concerning earnings from these sporting apps and the potential penalties for not reporting this income to the tax Wealth online decodes the income tax rules applicable to this casual income and the penalties for failing to pay tax on to tax experts, winnings from lottery, online gaming, online sports betting, etc., are considered casual income for income tax Surana, a practising chartered accountant, says, "Casual income under the Income-tax Act, 1961, refers to the income that is received on an irregular, non-recurring basis. Such income is characterised by its uncertain and non-recurring nature and is typically derived without any systematic or organised effort by the recipient."Hemen Asher, Partner, Bhuta Shah & Co LLP, says, "Casual income is irregular and non-recurring in nature and also includes any income which is not captured under any other head of income. Examples of casual income include winnings/earnings from crossword puzzles, lotteries, races (including horse races), games in the nature of betting/gambling, card games, game shows and online gaming, etc."Surana says, "Such income is taxable under the head income from other sources, as per Section 56(2)(ib) read with Section 2(24)(ix) of the Income Tax Act. In the ITR form, you are required to disclose the earnings under the section 'income from other sources.'"The Income Tax Act mentions a special tax rate at which winnings from online games, sports betting, and other casual income are says, "The taxation of casual income is subject to a special tax rate. It is taxed at a flat rate of 30% under section 115BB/115BBJ of the Income Tax Act. The applicability of the section depends on the source of income. Additionally, a surcharge and health and education cess will be applied to the special rate."According to the Income Tax Act, Section 115BB is applicable to income which includes winnings from any lottery, crossword puzzle, or race, including a horse race or card game and other games of any sort or from gambling or betting of any form. On the other hand, Section 115BBJ applies to winnings from online deducted at source (TDS) will also apply to the casual income. Surana says, "TDS at the rate of 30% applies to such winnings, as per Sections 194B/194BA/194BB of the Income Tax Act if the winnings amount exceeds Rs 10,000 per transaction. It is pertinent to note that such threshold of Rs. 10,000 only applies in case of Section 194B and 194BB, as no threshold limit is applicable in case of Section 194BA w.r.t. winnings from online games."Currently, the Income Tax Act has two tax regimes: the old and the new. The old tax regime offers various deductions to individual taxpayers. However, not many deductions are available for taxpayers in the new tax says, "No deductions for any expenditure or allowance are permitted against such income i.e., winnings from online games etc. Further, taxpayers cannot claim any deductions, such as sections 80C, 80D, etc., from casual income in any tax regime."Asher says, "The winnings earned from online gaming apps and betting apps are taxed on a gross basis. The benefit of the basic exemption limit is also not applicable to the casual income. This means that even if your total income, excluding winnings from online games and fantasy games, is below the basic exemption limit, ITR filing is mandatory to pay tax on the casual income."Asher explains this with an example. Suppose your total income is Rs 2.5 lakh, and you additionally have winnings from Dream11 amounting to Rs 50,000. Your total income, including winnings from Dream11, is Rs 3 lakh, which is below the basic exemption limit of Rs 4 lakh under the new tax regime for FY 2025-26. However, you are required to pay tax on winnings of Rs 50,000 from Dream11 at a special tax rate of 30%, in addition to health and education cess, and file your ITR as per the income tax income in the form of winnings from online games is taxable in the hands of a taxpayer. If the winnings are not disclosed, the taxpayer may face some penal says, "Upon detection, penalties can be levied under Section 270A for under-reporting or misreporting income. The penalties may range from 50% to 200% of the amount of tax payable on such disclosed income. Further, interest under Sections 234B and 234C may apply to late advance tax payments. In cases of deliberate tax evasion through non-reporting or under-reporting, a taxpayer may also be subject to prosecution."Asher says, "Non-reporting of casual income could potentially lead to scrutiny by the tax authorities, resulting in additional litigation costs. Therefore, one must take appropriate safeguards and ensure that all casual income one earns is duly captured and reported in the tax return, and the due taxes are paid."
Economic Times
08-05-2025
- Business
- Economic Times
Won money on Dream11, My11Circle? Know income tax rules for this casual income
Dream11 win: Winnings from lottery, online gaming, online sports betting, etc., are considered casual income for income tax purposes, as per tax experts. However, taxpayers are not aware of the tax rate applicable on casual income earned. Read on to know the latest income tax rules if money is earned from sports betting, and the penal consequences if it is not reported. Tired of too many ads? Remove Ads Earnings from sports betting and online gaming are casual income Tired of too many ads? Remove Ads Under which section are winnings from online gaming and sports betting taxed? Income tax rate for winnings from online games Can you claim any deductions on income in the form of winnings from online games? How are winnings from Dream11 and online games taxed? Tired of too many ads? Remove Ads Penalty for not disclosing casual income in ITR The Indian Premier League (IPL) is currently underway, and many people are earning money through sports betting apps, such as Dream11 , My11Circle, etc. However, few individuals are aware of the income tax rules concerning earnings from these sporting apps and the potential penalties for not reporting this income to the tax Wealth online decodes the income tax rules applicable to this casual income and the penalties for failing to pay tax on to tax experts, winnings from lottery, online gaming, online sports betting, etc., are considered casual income for income tax Surana, a practising chartered accountant, says, "Casual income under the Income-tax Act, 1961, refers to the income that is received on an irregular, non-recurring basis. Such income is characterised by its uncertain and non-recurring nature and is typically derived without any systematic or organised effort by the recipient."Hemen Asher, Partner, Bhuta Shah & Co LLP, says, "Casual income is irregular and non-recurring in nature and also includes any income which is not captured under any other head of income. Examples of casual income include winnings/earnings from crossword puzzles, lotteries, races (including horse races), games in the nature of betting/gambling, card games, game shows and online gaming, etc."Surana says, "Such income is taxable under the head income from other sources, as per Section 56(2)(ib) read with Section 2(24)(ix) of the Income Tax Act. In the ITR form, you are required to disclose the earnings under the section 'income from other sources.'"The Income Tax Act mentions a special tax rate at which winnings from online games, sports betting, and other casual income are says, "The taxation of casual income is subject to a special tax rate. It is taxed at a flat rate of 30% under section 115BB/115BBJ of the Income Tax Act. The applicability of the section depends on the source of income. Additionally, a surcharge and health and education cess will be applied to the special rate."According to the Income Tax Act, Section 115BB is applicable to income which includes winnings from any lottery, crossword puzzle, or race, including a horse race or card game and other games of any sort or from gambling or betting of any form. On the other hand, Section 115BBJ applies to winnings from online deducted at source (TDS) will also apply to the casual income. Surana says, "TDS at the rate of 30% applies to such winnings, as per Sections 194B/194BA/194BB of the Income Tax Act if the winnings amount exceeds Rs 10,000 per transaction. It is pertinent to note that such threshold of Rs. 10,000 only applies in case of Section 194B and 194BB, as no threshold limit is applicable in case of Section 194BA w.r.t. winnings from online games."Currently, the Income Tax Act has two tax regimes: the old and the new. The old tax regime offers various deductions to individual taxpayers. However, not many deductions are available for taxpayers in the new tax says, "No deductions for any expenditure or allowance are permitted against such income i.e., winnings from online games etc. Further, taxpayers cannot claim any deductions, such as sections 80C, 80D, etc., from casual income in any tax regime."Asher says, "The winnings earned from online gaming apps and betting apps are taxed on a gross basis. The benefit of the basic exemption limit is also not applicable to the casual income. This means that even if your total income, excluding winnings from online games and fantasy games, is below the basic exemption limit, ITR filing is mandatory to pay tax on the casual income."Asher explains this with an example. Suppose your total income is Rs 2.5 lakh, and you additionally have winnings from Dream11 amounting to Rs 50,000. Your total income, including winnings from Dream11, is Rs 3 lakh, which is below the basic exemption limit of Rs 4 lakh under the new tax regime for FY 2025-26. However, you are required to pay tax on winnings of Rs 50,000 from Dream11 at a special tax rate of 30%, in addition to health and education cess, and file your ITR as per the income tax income in the form of winnings from online games is taxable in the hands of a taxpayer. If the winnings are not disclosed, the taxpayer may face some penal says, "Upon detection, penalties can be levied under Section 270A for under-reporting or misreporting income. The penalties may range from 50% to 200% of the amount of tax payable on such disclosed income. Further, interest under Sections 234B and 234C may apply to late advance tax payments. In cases of deliberate tax evasion through non-reporting or under-reporting, a taxpayer may also be subject to prosecution."Asher says, "Non-reporting of casual income could potentially lead to scrutiny by the tax authorities, resulting in additional litigation costs. Therefore, one must take appropriate safeguards and ensure that all casual income one earns is duly captured and reported in the tax return, and the due taxes are paid."
