New TDS policy : MPL Fantasy Contests
As per the government regulations, a tax of 31.2% will be deducted if net winnings of individual is more than Rs 10,000
Net winnings = Winnings by teams of a user which won – Entry fees paid for the teams which has won amount in the contest
In Winnings only real cash is considered no consideration of winnings given in Bonus cash.
Examples of TDS deductions in Contest :
Suppose in a Head to Head Contest for a Match ,
Contest Entry fee = Rs 10,000 and Contest winnings are 18,000
A user registers a team (Team 1) in the contest and won Rs. 18,000
Net winnings of a user for the contest = Rs 18,000 – 10,000 = Rs 8,000
Net winnings are less than Rs 10,000 , so NO Tax will be applicable on winnings and the winner will be getting Rs 18,000.
Suppose in a Rumble Contest for a Match ,
Contest Entry fee = Rs 50
A user registers 5 teams in the contest. Now out of 5 , 3 teams win and 2 teams didn;t win any amount.
Team 1 , Team 2 , Team 3 won 2,000 ; 3,000 ; 10,000.
Net winnings of a user for the contest = Rs 15,000 – 150 = Rs 14,850
Net winnings are greater than Rs 10,000 , so 31.2% of tax will be deducted on Rs. 14,850