Author: Taxwallaz

Tax on Winnings From Dream11, MPL, and My11Circle

The online fantasy sports industry, with platforms like Dream11, MPL, and My11Circle, has experienced exponential growth, captivating millions of users. However, it’s crucial to grasp the tax implications associated with winnings from these platforms. In this blog, we delve into the exciting world of tax on winnings from Dream11, MPL, and My11Circle, offering an engaging and informative perspective.

Taxation on Winnings:

Section 194BA of the Income Tax Act mandates that earnings above Rs. 10,000 from online gaming apps, including fantasy sports platforms, fall under the “Income from Other Sources” category and are subject to a 30% Tax Deduction at Source (TDS) on the net earnings. When users achieve victories on these platforms, the system deducts tax at the source before transferring the winnings to their bank accounts. It’s important to note that TDS is calculated based on the combined value of cash and non-cash components in case the prize comprises both elements. However, the deduction is applicable only to the cash portion of the winnings.

If users choose not to withdraw their winnings, a TDS deduction occurs at the end of the financial year. Importantly, earnings from online games are not subject to the higher rate of TDS specified in Section 206 AB, even if users don’t file an Income Tax Return (ITR).

Legal Status of Online Gaming Platforms:

Determining the legality of online gambling in India is a nuanced endeavor. While there are no federal laws prohibiting online gambling, the Public Gambling Act of 1867, enacted before the advent of the internet, prohibits placing wagers on games based on chance. However, it allows exceptions for games of skill and lotteries. The Information Technology Act of 2000 does not specifically address online gambling.

States possess the authority to develop their own laws governing or banning online gambling activities. Some states, such as Nagaland, Meghalaya, and Sikkim, have established licensing regimes and gaming laws. Nagaland even has a licensing board for sports betting and online casino gaming. In contrast, states like Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka imposed temporary bans, which were later deemed unconstitutional by their respective High Courts. The Ministry of Electronics and IT is currently reviewing a legislation draft that aims to address concerns like preventing minors’ participation in online gambling activities .

Tax Treatment and Reporting:

Understanding the tax laws regarding winnings from fantasy sports apps like Dream11, MPL, and My11Circle is essential. Section 115BB of the Income Tax Act declares that winnings from lotteries, crossword puzzles, races, or card games are categorized as “income from other sources” and are subject to taxation . This implies that regardless of the participation fee paid, the tax is calculated solely on the amount won.

For instance, suppose a user paid Rs. 1,000 to participate in a fantasy sport and won Rs. 10,000. The tax would be levied on the winning amount (Rs. 10,000), with no deduction for the participation fee . When a user’s winnings on platforms like Dream11 exceed Rs. 10,000, a 30% tax is deducted at source. The remaining amount, after tax deduction, is credited to the user’s account as “winnings.” Users who have verified their PAN card receive a TDS certificate. The tax deduction made by fantasy sports companies is reflected in Form-26AS. Notably, cash bonuses offered by these platforms are typically excluded when calculating TDS .

Recent Tax Law Changes:

Effective from April 1, 2023, a new TDS law has been introduced. Under this law, TDS is deducted at 30% of the taxable amount during withdrawal. The taxable amount is determined by calculating the difference between withdrawals and deposits made by the user . Users are encouraged to refer to the government notification provided on the Dream11 help page or consult tax experts for detailed information on this new TDS law.

In conclusion, the tax implications surrounding winnings from online fantasy sports apps like Dream11, MPL, and My11Circle are of paramount importance for users. As per current tax regulations, a 30% TDS is deducted on winnings exceeding Rs. 10,000. Staying informed about these tax regulations and reporting earnings accurately is essential. As the legal landscape continues to evolve, users should remain updated with the latest regulations and seek professional advice when needed. Remember to engage in responsible gambling practices and only allocate an amount that is affordable to lose.

How to e-File Your ITR Without a Form-16

Filing your Income Tax Return (ITR) is a crucial financial responsibility for every taxpayer in India. Form 16 is an essential document provided by employers to their employees, outlining the taxable income and deductions for the financial year. However, there are cases where salaried individuals may not receive a Form 16 from their employers. The good news is that even without Form 16, you can still file your ITR. In this blog, we will explore the steps to e-file your ITR without a Form 16.

Understanding Form 16:

Form 16 is a TDS certificate that employers must issue to employees, detailing their taxable income and deductions. It is typically issued on or before June 15th of the financial year following the year in which tax was deducted at source (TDS). However, certain employees whose taxable income does not exceed the basic exemption limit may not receive a Form 16 from their employers. Nevertheless, all salaried employees, regardless of whether they receive Form 16 or not, must file their annual ITR if their gross income exceeds the basic exemption limit of Rs 2.5 lakhs.

Steps to e-File ITR Without Form 16:

Step 1: Determine Income from All Sources:

Calculate your income from all sources during the financial year. This includes your salary, pension, income from other sources (like interest on fixed deposits), and any other income you may have earned.

Step 2: Verify Tax Credit with Form 26AS:

Check your Form 26AS to verify the TDS deducted by your employer. Form 26AS is a consolidated tax statement that shows the amount of TDS deducted against your PAN. Ensure that the TDS amount mentioned in Form 26AS matches the TDS deducted by your employer. If you find any discrepancies, reach out to your employer for correction.

Step 3: Claim HRA and Deductions:

If you are eligible for House Rent Allowance (HRA), make sure to claim it. Additionally, gather all the necessary documents related to tax deductions, such as investments made under Section 80C (like Life Insurance, Employee Provident Fund, Public Provident Fund, etc.), medical insurance premium under Section 80D, and interest on education loans under Section 80E.

Step 4: Include Other Income:

If you have income from sources other than your salaried job, such as rental income, interest income, etc., make sure to include it in your taxable income.

Step 5: Pay Additional Tax if Required:

If your total tax paid is less than the tax payable as per Form 26AS, you must pay the additional tax online.

Step 6: File Your Income Tax Return:

Once you have completed all the necessary steps and ensured the accuracy of your details, you can proceed to e-file your income tax return. There are various online platforms like ClearTax that offer easy and user-friendly interfaces to help you file your return effortlessly.

e-Filing Without Form 16: A Summary

Remember, not receiving a Form 16 does not exempt you from filing your ITR if your income exceeds the basic exemption limit. By following the steps outlined above, you can accurately calculate your taxable income, claim deductions, and pay any additional taxes, if required, to e-file your ITR without Form 16.

It is essential to keep track of all your income

How to Claim Your Income Tax Refund : A Comprehensive Guide

Introduction: Claiming an income tax refund is a common process for individuals who have paid more tax than their tax liability for a particular financial year. In India, the Income Tax Department allows taxpayers to claim refunds under Section 237 of the Income Tax Act, 1961. This blog post will guide you through the process of claiming an income tax refund in India, including the necessary steps and considerations.

Step 1: Pre-Validate Bank Account and Link PAN Before filing your income tax return (ITR), it is essential to have a pre-validated bank account where you want to receive the refund amount. The income tax department introduced the policy of issuing e-refunds only to pre-validated bank accounts. Make sure your Permanent Account Number (PAN) is linked with the specific bank account to receive the refund electronically.

Step 2: File Income Tax Return (ITR) To claim an income tax refund, you need to file your ITR. The process of claiming a refund is integrated with the ITR filing process. There is no separate procedure for refund claims. Follow these steps to file your ITR and claim a refund:

1. Choose the appropriate ITR form: Select the relevant ITR form based on your income sources and category.
2. Gather required documents: Collect all the necessary documents, including Form 16, Form 16A, investment proofs, and other supporting documents.
3. Calculate taxable income and tax liability: Compute your total income and tax liability for the financial year.
4. Fill in the ITR form: Fill in the ITR form accurately, providing all the required details and income sources.
5. Verify the return: Electronically verify the return using the Aadhaar number OTP, electronic verification code (EVC) generated through the bank, or physically verify by sending the signed ITR-V to the Centralized Processing Centre (CPC) within 120 days of filing the return.
6. Include refund details: Ensure that the excess tax for which you are claiming a refund reflects in Form 26AS, which is a consolidated tax statement.
7. Submit the return: Once all the information is correctly filled, submit the ITR.

Step 3: Verification and Processing After filing your ITR, the Income Tax Department will verify the details provided. If the refund claim is found to be valid, the refund will be processed. Early processing of refunds is encouraged, as it leads to early receipt of the refund amount. The refund processing time may vary depending on the workload of the Centralized Processing Centre (CPC).

Step 4: Checking Refund Status To track the status of your income tax refund, you can visit the NSDL website. Follow these steps:

1. Visit the NSDL website (https://www.nsdl.co.in/).
2. Enter your PAN, assessment year, and captcha code.
3. Click on “Submit.”
4. On the next page, you will see the status of your refund.

Conclusion: Claiming an income tax refund in India involves filing your income tax return accurately and ensuring that you have a pre-validated bank account linked to your PAN. By following the steps mentioned above and keeping track of the refund status, you can successfully claim your income tax refund. Remember to comply with the guidelines provided by the Income Tax Department and keep all the necessary documents for reference throughout the process.

AdaniConneX Secures $213 Million Financing Facility For Data Centres: Powering India’s Digital Revolution

In a groundbreaking development for the data center industry, AdaniConneX, a dynamic joint venture between Adani Enterprises Ltd (AEL) and EdgeConneX (ECX), has successfully secured a financing facility worth $213 million for its vibrant under-construction data center asset portfolio. This funding considered India’s largest data center financing deal to date, brings together a consortium of international lenders, including ING Bank N.V., Mizuho Bank Ltd., MUFG Bank Ltd., Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation. Get ready to dive into the exciting world of AdaniConneX’s data center revolution!

Expanding Data Center Infrastructure: AdaniConneX is on a mission to meet the surging demand for reliable IT infrastructure in India by embarking on the development of a groundbreaking 1 GW Green Data Centre platform. This ambitious platform encompasses a range of awe-inspiring hyperscale to hyperlocal data center investments across the nation. With the secured financing facility in place, AdaniConneX is well-equipped to deliver a robust, sustainable, and future-ready data center capacity of 1 GW by 2030. Brace yourself for a data-driven future!

Significance of the Financing Facility: The successful closure of the remarkable financing facility signifies a significant milestone for AdaniConneX’s transformative initiative, poised to revolutionize the digital infrastructure landscape in India. Armed with this substantial pool of liquidity, AdaniConneX is strategically positioned to accelerate the implementation of its under-construction asset portfolio, seamlessly catering to the soaring demand for data center services. The stage is set for an unprecedented data center transformation!

Collaboration and Expertise: AdaniConneX’s trailblazing partnership with EdgeConneX, an industry titan in data center solutions, fuses together unparalleled data center expertise and cutting-edge technology solutions. This dynamic collaboration harmonizes EdgeConneX’s prowess in data center operations with Adani’s comprehensive knowledge in full-stack energy management, renewable power, and project development. Together, they aim to revolutionize the data center sector by providing clean and sustainable energy solutions, all while striving for a carbon-neutral footprint. It’s a match made in data center heaven!

Project Details: The $213 million financing facility will power the development of two extraordinary data center projects. The first project, known as the ‘Chennai 1’ campus, resides in the vibrant city of Chennai, Tamil Nadu. It proudly holds the distinction of being the state’s first pre-certified IGBC platinum-rated data center, offering tailor-made co-location solutions for enterprises. The second project, located in Noida, Uttar Pradesh, is designed to fulfill the expansion needs of hyperscale customers in India. Together, these data centers will boast a combined capacity of 67 MW, with ‘Chennai 1’ contributing 17 MW and the Noida campus contributing an impressive 50 MW to the overall capacity. Get ready for data center marvels in two exciting locations!

Conclusion: AdaniConneX’s groundbreaking procurement of a $213 million financing facility for its under-construction data center asset portfolio marks a pivotal moment in India’s digital infrastructure revolution. As AdaniConneX combines innovation, expertise, and sustainable energy solutions, it paves the way for an unparalleled data-driven future in India. Keep your eyes on AdaniConneX as it sets the stage for a dynamic and vibrant data center landscape, propelling India’s digital revolution into new realms of possibility.

Will Byju make the cut with new Auditor ?

Byju’s, the renowned edtech major, recently underwent a significant change in its auditor position. Deloitte Haskins & Sells, the previous statutory auditor of Byju’s, resigned from its role due to a delay in the submission of financial statements for the fiscal year ending March 31, 2022. Deloitte expressed concerns about the timeliness of the audit process and the handling of audit report modifications.

In response to Deloitte’s resignation, Byju’s appointed BDO (MSKA & Associates) as its new auditor. Byju’s acknowledged Deloitte for their support over the past six years and assured a seamless integration of the new auditor into the existing audit framework. BDO was chosen by Byju’s based on their extensive experience working with multinational clients and their expertise in navigating the complexities of consolidation, which aligns with Byju’s global acquisitions. As the new auditor, BDO will cover the holding company, subsidiaries like Aakash Education Services Limited, and the overall group consolidated results, ensuring comprehensive audit coverage. Byju’s emphasized that this appointment upholds the highest standards of financial scrutiny and accountability.

Additionally, it’s worth noting that three board members from Byju’s, namely GV Ravishankar, Russell Dreisenstock, and Vivian Wu, reportedly resigned; however, Byju’s denied these claims and urged media outlets to rely on verified sources for accurate information.

To summarize, Byju’s appointed BDO as its new auditor following Deloitte’s resignation due to a delay in the submission of financial statements. Byju’s expressed gratitude to Deloitte and ensured a smooth transition. The appointment of BDO aims to maintain high standards of financial scrutiny and accountability.

Byju on the verge of Collapse ? What went Wrong

Deloitte’s Resignation and Board Members’ Departure Shake Byju’s Stability

In a surprising turn of events, Deloitte, the international auditing company, has resigned as Byju’s auditor, delivering a significant blow to the Indian ed-tech startup. The decision by Deloitte to discontinue its services stems from concerns regarding unresolved audit report revisions for the previous year and the lack of preparedness for financial statements and underlying books and records. Deloitte cited the delayed release of financial statements by Byju as the primary reason for its resignation.

Moreover, Byju’s faced another setback as three board members, including representatives from Prosus and Sequoia, have also resigned. These board members’ departures exacerbate the challenges faced by Byju and raise further concerns about unresolved issues within the company. The resignations cast doubt on the stability and leadership of Byju’s, potentially undermining investor confidence.

Byju’s, valued at $22 billion, has been the most valued ed-tech startup in India. Founded by Byju Raveendran and Divya Gokulnath, the company has experienced rapid growth and attracted substantial investments. However, recent issues surrounding financial reporting have raised questions about the company’s long-term prospects and stability.

Following Deloitte’s resignation, Byju’s announced the appointment of BDO (MSKA & Associates) as its new statutory auditor. Byju’s referred to Deloitte’s departure as a “planned transition” and denied the resignations of its board members. Nevertheless, Deloitte’s resignation and the departure of board members have sent shockwaves throughout the industry, casting doubts on Byju’s financial reporting practices and overall soundness.

Byju’s statement regarding the appointment of BDO (MSKA & Associates) as the new auditor signifies the company’s commitment to upholding the highest standards of financial scrutiny and accountability . However, the impact of Deloitte’s resignation and the board members’ departures cannot be ignored, as they raise concerns about Byju’s internal controls, transparency, and corporate governance.

These recent developments have brought attention to Byju’s financial reporting delays and drawn scrutiny from authorities, investors, and creditors. Byju’s reputation and credibility are now at stake, necessitating a swift resolution to the ongoing issues and a restoration of trust among stakeholders.

Overall, Deloitte’s resignation and the departure of key board members represent a significant challenge for Byju’s, impacting its financial reporting procedures, corporate governance, and investor confidence. The company must address these concerns promptly and ensure transparency and accountability to regain stability and trust within the industry.

Pension Scheme Assets to Surpass 10 lakh crore

In a recent interview with the Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Deepak Mohanty, it was revealed that the assets under management (AUM) in pension schemes are expected to surpass Rs 10 lakh crore by September . This blog post will explore the current status of the AUM and the factors contributing to its potential growth, making it a more dynamic and enjoyable read.

Current AUM Figures and Future Projection: As of now, the AUM in pension schemes stands at Rs 9.58 lakh crore, with the National Pension Scheme (NPS) accounting for Rs 9.29 lakh crore and the Atal Pension Yojana (APY) contributing Rs 28,538 crore . The NPS alone has already exceeded 10 lakh subscribers . Chairman Mohanty anticipates that the AUM will cross the milestone of Rs 10 lakh crore in the first half of the current fiscal year . The projected growth is driven by regular contributions from subscribers and various factors such as fund returns and market performance . However, it is important to note that the AUM value is subject to market fluctuations due to its mark-to-market nature .

Factors Influencing AUM Growth: The PFRDA is actively focusing on expanding the subscriber base to achieve the target AUM of Rs 10 lakh crore and beyond. Chairman Mohanty expects the number of subscribers to reach 13 lakh, indicating the growing interest in pension schemes. While the NPS has shown consistent growth in government employee contributions, there is a need to enhance private sector participation . To address this, the PFRDA is actively promoting NPS among corporates and sensitizing trade bodies to facilitate its adoption .

Digital Transformation and APY Expansion: To make the pension scheme enrollment process more accessible and streamlined, the PFRDA is leveraging digital platforms. Initiatives like e-NPS enable individuals to directly subscribe to pension schemes without intermediaries . Furthermore, the Atal Pension Yojana (APY) has demonstrated satisfactory penetration and expansion, with a subscription base of approximately 5.2 crore . Chairman Mohanty emphasized the untapped potential in the age group of 18 to 40, which includes around 25 crore account holders within the Pradhan Mantri Jan Dhan Yojana (PMJDY) framework .

Conclusion: In conclusion, the AUM in pension schemes, including the NPS, APY, and NPS Lite, is expected to surpass Rs 10 lakh crore in the coming months. With an AUM of Rs 9.58 lakh crore already achieved, the growth is driven by contributions from subscribers and factors such as fund performance and market conditions. The PFRDA is actively working on expanding the subscriber base and promoting pension schemes among the private sector and corporates. The digital initiatives, like e-NPS, have simplified the enrolment process, while the APY has witnessed satisfactory penetration. The future outlook for the AUM suggests significant potential for growth, especially among the younger population. As the PFRDA continues its efforts, achieving and surpassing the magical figure of Rs 10 lakh crore seems within reach .

GST Evasion of ₹30,000 Crore Unearthed

In a significant development, the Directorate General of GST Intelligence (DGGI) has recently uncovered a staggering case of GST evasion amounting to ₹30,000 crore. This revelation comes as part of the intensified efforts by tax officers to detect and curb fraudulent activities under the Goods and Services Tax (GST) regime. The detection of such a substantial evasion highlights the ongoing challenges faced by the government in ensuring compliance and revenue protection.

According to official sources, the GST evasion detection has witnessed a substantial increase in the just-concluded fiscal year of 2022-23, with tax officers detecting evasion amounting to over ₹1.01 lakh crore. This amount marks a nearly double increase compared to the previous fiscal year. It is worth noting that in the last fiscal year, the DGGI had successfully recovered ₹21,000 crore. The government’s response to such evasion has been swift and proactive, with measures in place to enhance compliance and leverage data analytics and human intelligence to identify and combat fraudulent practices.

The modus operandi employed by these evaders includes various strategies such as undervaluing taxable goods and services, incorrect availment of exemption notifications, wrongful utilization of input tax credits, non-payment of taxes on taxable supplies, clandestine removal of goods and services, as well as fraudulent availment of input tax credits using invoices from fictitious firms. Such sophisticated tactics highlight the need for stringent monitoring and robust anti-evasion measures.

The detection of GST evasion cases has been on the rise over the years, indicating the need for continuous vigilance and strict enforcement of tax regulations. In the fiscal year 2022-23 alone, approximately 14,000 evasion cases were detected, surpassing the numbers from the previous two fiscal years. The total number of GST evasion cases detected in the last three fiscal years stood at 39,170.

To address this concerning issue, the government has been actively working towards detecting and preventing GST evasion. The Finance Ministry has been resolute in its efforts, aiming to protect the revenue base and ensure a fair and transparent tax system. In a reply to the Lok Sabha, it was revealed that GST evasion detected from July 2017 to February 2023 amounted to nearly ₹3.08 lakh crore, with a recovery of over ₹1.03 lakh crore. Furthermore, the authorities have taken decisive action by arresting 1,402 individuals involved in tax evasion in the past five-and-a-half years.

The government’s commitment to tackling GST evasion is crucial to maintaining a robust and sustainable revenue system. By deploying advanced data analytics, strengthening compliance mechanisms, and taking prompt enforcement actions, the authorities can further curb such fraudulent activities and ensure a level playing field for all businesses.

The fight against GST evasion remains an ongoing endeavor, necessitating continuous efforts from tax authorities and stakeholders to build a tax ecosystem characterized by integrity, transparency, and compliance. The unearthing of this massive GST evasion of ₹30,000 crore serves as a stark reminder of the challenges faced in safeguarding the nation’s revenue and upholding the principles of fair taxation.

10 Best Tier II Cities in India for Real Estate Investment

Introduction: India’s real estate market offers numerous investment opportunities beyond the major metropolitan cities. Tier II cities, with their growing infrastructure, emerging job markets, and affordable property prices, have gained significance among real estate investors. In this blog, we will explore the top 10 tier II cities in India that present promising prospects for real estate investment. These cities offer a blend of economic growth, improved livability, and potential for high returns on investment.

1. Coimbatore: Industrial Hub with Affordable Housing: Coimbatore, the largest industrial city in Tamil Nadu, has witnessed significant growth in recent years. Its robust infrastructure, excellent educational institutions, and affordable housing rates make it an attractive option for real estate investment .
2. Indore: Mini-Mumbai with Promising Opportunities: Indore, often referred to as a mini-Mumbai, offers the advantages of a tier-I city without the chaos and expenses. With a growing number of businesses and corporate offices, Indore presents favorable conditions for property investment .
3. Vadodara: Affluent City with Luxury Real Estate: Vadodara, an affluent city in Gujarat, provides luxury real estate options at competitive prices. The city’s well-planned infrastructure and affordable residential units make it an attractive choice for investors .
4. Visakhapatnam: Strategic Location with Coastal Charm: Visakhapatnam, also known as Vizag, is a strategically located port city with efficient transport connections. Its proximity to Southeast Asian markets and advancements in the education sector make it an enticing destination for real estate investment .
5. Trivandrum: Kerala’s IT Hub with Strong Demand: Trivandrum, the capital city of Kerala, has emerged as the state’s largest IT hub. The city’s high population of salaried professionals and strong demand for apartments and villas make it an attractive real estate investment option .
6. Chandigarh: Well-Planned City with Affordability: Chandigarh, renowned for its well-planned infrastructure, efficient transportation, and affordable housing options, is a preferred choice for both Indian and NRI investors. Its robust amenities and good quality of life contribute to its real estate investment potential .
7. Lucknow: Growing City with Smart Infrastructure: Lucknow, the capital of Uttar Pradesh, has witnessed significant development in recent years. With the introduction of a metro rail network and improved road connectivity with New Delhi, Lucknow has become a convenient location for property investment .
8. Kanpur: Emerging Investment Destination: Kanpur, an industrial city in Uttar Pradesh, offers potential investment opportunities in its real estate market. With its growing commercial sector and availability of affordable housing, Kanpur is attracting the attention of investors .
9. Bhubaneswar: Planned City with Rapid Development: Bhubaneswar, the capital of Odisha, is known for its planned layout and rapid development. The city’s infrastructure projects, including the Bhubaneswar Smart City Plan, and its emergence as an education and IT hub, make it an attractive destination for real estate investment .
10. Jaipur: Heritage City with Growing Commercial Potential: Jaipur, the Pink City of Rajasthan, combines its rich heritage with a growing commercial sector. The city’s tourism industry, IT parks, and increasing job opportunities contribute to its real estate investment potential. Additionally, the government’s focus on infrastructure development and smart city initiatives further enhance Jaipur’s prospects for investors .

Conclusion: Real estate investment in tier II cities in India offers opportunities for investors seeking growth and high returns. Coimbatore, Indore, Vadodara, Visakhapatnam, Trivandrum, Chandigarh, Lucknow, Kanpur, Bhubaneswar, and Jaipur are among the top-tier II cities that showcase promising potential. These cities offer a mix of economic growth, infrastructure development, and affordability, making them attractive destinations for real estate investment in India. However, thorough research, market analysis, and consultation with experts are essential before making any investment decisions.