Introduction
With fantasy gaming platforms like Dream11 becoming mainstream in India, taxation rules around such winnings have evolved significantly. Starting from 1 April 2023, the government introduced a new taxation regime under Section 194BA of the Income Tax Act. As a result, TDS (Tax Deducted at Source) is now applicable on net winnings from online games, not just on contest winnings above ₹10,000.
If you’ve played on Dream11 during FY 2024–25, it’s likely that 30% TDS was deducted from your account on either each withdrawal or at the end of the financial year (31 March 2025). But in many cases, you can claim a refund of this TDS when filing your Income Tax Return (ITR).
This detailed guide explains:
- The updated TDS rules for online gaming
- How Dream11 calculates net winnings and applicable tax
- Step-by-step process to claim a refund
- Real-life example with numbers
- Refund eligibility in different scenarios
- FAQs and common mistakes
Legal Background: Why TDS is Deducted on Dream11 Winnings
Old Rule (Until 31 March 2023): Section 194B
- TDS was deducted only on single contest winnings exceeding ₹10,000
- Rate: 30% + applicable cess (31.2%)
- Applied at the time of winning
New Rule (From 1 April 2023): Section 194BA & 115BBJ
- TDS is deducted on net winnings across all games and contests
- Rate: Flat 30% (no surcharge or cess for TDS)
- Applied at the time of withdrawal, or year-end if no withdrawals made
- No exemption allowed: Basic exemption limit, Section 87A rebate, or Section 80C deductions are not applicable
Nature of Income
- Dream11 winnings are now classified as “Income from Other Sources”, specifically “Online Gaming Winnings” and are taxed under a special regime.
- Taxed at a flat 30% under Section 115BBJ, separate from your salary or business income.
How Net Winnings Are Calculated by Dream11
Dream11 uses the following formula to compute Net Winnings for TDS purposes:
Net Winnings = A – B – C – E + D
Where:
- A = Total Withdrawals made during the financial year
- B = Total Deposits made during the financial year
- C = Opening Balance on 1 April (unused deposits + winnings)
- D = Closing Balance on 31 March (unused deposits + winnings)
- E = Amount already taxed via TDS earlier during the year
TDS Deducted = 30% of Net Winnings
If no withdrawal is made during the year, TDS is deducted on year-end net winnings, adjusted for balance and deposits.
Example: Net Winnings and TDS Calculation
Let’s break it down with an example:
| Particulars | Amount (₹) |
|---|---|
| Deposits during FY (B) | 50,000 |
| Withdrawals during FY (A) | 1,20,000 |
| Opening Balance (C) | 10,000 |
| Closing Balance (D) | 5,000 |
| Prior TDS (E) | 0 |
Step-by-Step Calculation:
Net Winnings = A – B – C – E + D
= ₹1,20,000 – ₹50,000 – ₹10,000 – ₹0 + ₹5,000
= ₹65,000
TDS = 30% of ₹65,000 = ₹19,500
This ₹19,500 is auto-deducted from your account on 31 March 2025 if not already deducted during the year.
When Can You Claim a TDS Refund?
Even though Dream11 winnings are taxed at a flat 30%, you can still claim a refund in the following situations:
Case 1: Your Actual Net Winnings Became Zero or Negative by Year-End
- You made some early withdrawals and TDS was deducted.
- Later, you deposited more money and lost it in contests.
- At year-end, net winnings = zero or less.
- You are eligible for a full refund of earlier deducted TDS.
Case 2: Your Total Tax Liability is Less Than TDS Already Paid
- You have a job or other taxable income and file returns normally.
- Dream11 deducted TDS of ₹6,000 on ₹20,000 winnings.
- But your total tax liability on all income is only ₹2,000.
- You can claim a refund of ₹4,000 while filing your ITR.
Case 3: You Have Other TDS Credits But Lower Total Income
- Suppose your total income (including Dream11) is ₹6 lakh.
- You claim standard deduction and tax slabs.
- Overall tax due is ₹5,000.
- But Dream11 already deducted ₹12,000 in TDS.
- You are eligible for refund of excess ₹7,000.
When Refund Is Not Possible
You will not get a TDS refund if:
- Dream11 Net Winnings = ₹65,000
- TDS deducted = ₹19,500 (30%)
- You have no other income
- You cannot offset or adjust this tax since basic exemption limits do not apply
In such cases, TDS = final tax liability, and no refund is possible.
How to Download Your TDS Certificate from Dream11
Dream11 issues Form 16A for each quarter if TDS is deducted. Here’s how to download it:
- Open the Dream11 App
- Tap on Profile Icon
- Select My Balance → My Transactions
- Tap the Download Icon (top-right corner)
- Select TDS Certificate
- Choose the relevant Financial Year
- Click Send to Email
TDS Certificate Schedule for FY 2024–25
| Period | Certificate Availability |
|---|---|
| Apr–Jun 2024 | September 2024 |
| Jul–Sep 2024 | December 2024 |
| Oct–Dec 2024 | March 2025 |
| Jan–Mar 2025 | July 2025 |
Step-by-Step: Claiming a TDS Refund from Dream11
Step 1: Check Form 26AS or AIS
- Log in to https://incometax.gov.in
- Go to ‘View Form 26AS’ or download AIS (Annual Information Statement)
- Check if Dream11’s TDS shows under your PAN
Step 2: File Your Income Tax Return (ITR)
- Use ITR-2 (if you have gaming or capital gain income)
- Report Dream11 income under “Income from Other Sources”
- Declare TDS under the “Taxes Paid” section
Step 3: Verify & Submit
- Validate return using Aadhaar OTP or Net Banking
- Ensure your bank account is pre-validated on the income tax portal
Step 4: Track Your Refund
- Go to Dashboard → View Returns/Forms → Refund Status
- Or use the NSDL tracker: NSDL Refund Status
Refunds are usually processed in 30–90 days.
Common Mistakes to Avoid
| Mistake | Consequence |
|---|---|
| Using ITR-1 for Dream11 income | Rejection of return or incorrect assessment |
| Not linking PAN in Dream11 | TDS may not reflect in 26AS |
| Ignoring closing balances | Can lead to incorrect TDS deduction |
| Using old 194B rules | Results in under-reporting of income |
| Forgetting to declare Dream11 winnings | Penalty for income concealment |
FAQs
Q1: Can I avoid TDS by not withdrawing winnings?
No. TDS will still be deducted on year-end net winnings, even without withdrawal.
Q2: Can I claim a refund even if I don’t have a job?
Only if your net winnings became zero or you incurred losses. Otherwise, 30% is final.
Q3: Can I use ITR-1 for Dream11 winnings?
No. You must use ITR-2 for reporting winnings from online games.
Q4: Is GST also applicable on winnings?
No. GST is only applicable on the platform’s service fee (not your winnings). You only pay income tax.
Q5: Can I claim expenses against my winnings?
No. Expenses or losses are not deductible from online gaming income under Section 115BBJ.
Final Thoughts
TDS on Dream11 winnings is a legal requirement under the new income tax regime, but that doesn’t mean you will lose all your winnings to tax.
Understanding when and how to claim a refund is the key to keeping your income in check. Ensure:
- You download TDS certificates on time
- File ITR using the correct form
- Reconcile Form 26AS with your Dream11 transactions
- Claim refund if eligible
If you’re unsure or need professional help, feel free to reach out.
Mail us at: stoxntaxblog@gmail.com
Or WhatsApp us at: 7993522370
We help fantasy players, casual earners, and pro gamers file accurate tax returns with maximum refund potential.
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