By Admin 
It is said that no one knows when, where and how luck will change! An ordinary young man from India living in Abu Dhabi has done such a feat that it becomes difficult to believe. Yes, this Indian youth has won Dubai’s biggest lottery till date, a total of Rs 240 crores. But the story does not end here…the real twist begins now. Because the question is whether after receiving such a huge amount, he will have to lose half the money in tax. Let us know.
Who is going to win the lottery?
The name of 29-year-old Indian expatriate Anilkumar Bolla, living in Abu Dhabi, is on everyone’s lips today. Because he has won the biggest lottery of UAE till date, the amount of which is 100 million dirhams, i.e. approximately Rs 240 crores. The win was recorded in draw #251018 of the UAE’s new national lottery system Lucky Day Draw held on October 18. As soon as the results were announced, Anilkumar Bolla became the owner of wealth worth crores.
How to win this lottery?
UAE’s Lucky Day lottery is completely different from other lottery systems. In this, every person has to buy a digital ticket by paying only Dh100 (about Rs 2460). Every ticket gets a random number and the draw system selects that number automatically. There is no human intervention of any kind in this process, due to which this system is considered completely digital, transparent and government-certified.
Will tax have to be paid on this winning?
Now the biggest question is that how much tax will be charged on this amount of Rs 240 crore? Actually, the biggest happiness for this person is that winning lottery in UAE is completely tax-free. That means Anilkumar will not have to pay any tax to the government there. But if he sends this amount to India or declares it in India, then the game changes. According to India’s Income Tax Act, 1961, it is mandatory to pay 30% tax on lottery winnings. On top of this, 15% surcharge (if the winning is more than Rs 1 crore) and 4% health and education cess are also added. That means the total tax burden reaches about 35.88%.
If the calculation is done according to this, then on the winning of Rs 240 crore, about Rs 86 crore will have to be paid as tax and about Rs 154 crore will be left in hand.
When will tax have to be paid?
Many NRIs living in India often think that if they win lottery abroad then they will not have to pay tax, but this is not completely true. The tax rules depend on whether the winner is a resident or non-resident in India. If the person is NRI and the amount is not transferred to India, then there is no tax. But if the money is declared in India in any form, tax rules come into effect immediately.
Also read: UAE Lottery Rules: Can you buy lottery in UAE while staying in India, know what are its rules?