Today in this Article we are learning about Dream11 TDS Refund Process Rate and Rules. Recently Union Budget 2023 has introduced so many new compliances and rules under Budget 2023 and one of these are Section 115BBJ and Section 194BA. Under these Sections the government has introduced various new rules which are applicable on the game Dream11.
If you are a Dream11 player this article is a must read for you all. Here you will get information about the new TDS rule, the rate of TDS and whether you can claim a refund or not.
What is TDS on Dream11 ?
TDS stands for Tax Deducted at Source in the context of the Indian Income Tax Act. It is a method by which certain defined payments are subject to tax deduction by the person making the payment, and the tax deducted is transferred to the government on the recipient’s behalf.
Dream11 TDS Rule For Players ?
Government of India has introduced two new sections in Union Budget 2023 i.e. Section 115BBJ and Section 194BA. Under these Sections, the Government has introduced the new rule for deducting TDS in Dream11 or any other online games from which players earn money.
As per these sections, as the number of online games are growing, now the government will charge TDS on any amount of income. Previously the government used to deduct TDS only if the winning income used to exceed INR 10,000/- but now the government has withdrawn the limit of INR 10,000/- and there will be deduction of TDS on any amount.
What is the TDS rate for Dream11?
The government under Section 115BBJ and Section 194BA has introduced the TDS rate at flat 30% on every amount. The government has under Budget 2023 has provided that all income from online games will be charged at flat 30% TDS.
Section 115BBJ provides that every income earned from online games like Dream11 would be charged at flat 30% .
On the other hand, Section 194BA provides that now TDS will be deducted on the winnings from online games even below the amount of INR 10,000/-. These two sections combined provide the rate and rules relating to TDS rate for Dream11.
Both the section are effective from April 2023 i.e.,the rate of flat 30% and the reduction of amount will be applicable from April 2023
Is Refund of TDS of Dream11 possible?
Many Dream11 players are having the question of whether they will receive the refund of TDS of Dream11 or not?
The simple answer to this question is NO. The government has provided that there would be no refund applicable on the amount deducted as TDS on the winnings from Dream11 even if the player’s income does not cross the taxable limit i.e 2,50,000 Under Old Regime or 3,00,000 under the New Regime. So even After ITR Filing you can’t claim TDS Refund from Dream11.
Hence, no person can claim a refund under the new section whether they pay tax or not. The tax deducted at source will get associated with the PAN of taxpayer which the taxpayer can verify by visiting the Income tax website.