From sawdust to crores: Dream11 win transforms plywood worker’s life, tax takes a big cut
Mangal Prasad, a 30-year-old Indian plywood factory worker from Uttar Pradesh’s Kaushambi district, has become an overnight sensation after winning ₹4 crore ($0.47 million) on Dream11, India based fantasy sports platform that allows users to play daily fantasy sports contests, primarily in cricket.
With just a ₹39 entry fee during the IPL (Indian Premier League) match between Punjab Kings and Chennai Super Kings on 29 April, Mangal’s win sparked celebrations across his village and social media platforms alike. But while the headline amount is ₹4 crore, the actual money he takes home is ₹2.44 crore—after taxes and levies.
How much Mangal will actually get
Although Mangal won ₹4 crore, he will not receive the full amount due to tax deductions under Indian law. Dream11 winnings are categorized as “Income from Other Sources” under Section 56(2)(ib) of the Income Tax Act, 1961.
The winning amount of ₹4 crore is subject to a flat income tax rate of 30 percent under Section 115BB. Additionally, the surcharge and health & education cess raise the effective tax rate to approximately 39 percent. Consequently, Dream11 deducts ₹1.56 crore as Tax Deducted at Source (TDS) under Section 194B.
As a result, Mangal’s net payout is ₹2.44 crore. According to Indian tax rules, if winnings exceed ₹10,000, the platform is required to deduct TDS before releasing the funds.
GST also deducted on entry fee
Apart from income tax, Mangal’s ₹39 entry fee was also subject to 28 percent Goods and Services Tax (GST). Out of his ₹39, Dream11 deducted ₹9.92 and submitted it to the GST authorities as required by law. This GST is charged on the betting value paid to participate in the game.
What Mangal needs to do next
Even though ₹1.56 crore has already been deducted as TDS, Mangal is not done with tax compliance. He needs to take several steps to ensure everything is in order.
First, Mangal must file his Income Tax Return (ITR) and report the full ₹4 crore as income for the financial year. This is crucial for accurate tax reporting and compliance. Next, he should check Form 26AS, which will reflect the TDS already deducted by Dream11. This form is essential for verifying the tax deducted at source.
Mangal must match the income and TDS data to ensure there is no mismatch between what Dream11 deducted and what is reflected in his tax credit statement. Any discrepancies could lead to complications.
Failure to file or report the full amount can lead to legal and financial issues.
Life-changing win
Mangal’s win has changed his life and brought attention to the growing popularity of fantasy sports platforms in India. His story is a clear example of how digital gaming can result in massive rewards—but also comes with tax liabilities.
