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Ravi Kumar from Jharkhand won Rs 3 crore on Dream11. After taxes, he keeps Rs 1.83 crore. Investment experts advise on managing such windfalls wisely
Winners should aim to build a steady income stream and ensure their wealth is protected from market shocks and personal mismanagement. (AI Generated)
A man from a remote town in Jharkhand’s Palamu district recently had a life-changing moment after a few taps on his smartphone brought him a Dream11 windfall of Rs 3 crore. But Ravi Kumar will not receive the entire amount as some portion is deducted towards taxes.
As the popularity of online fantasy sports platforms like Dream11 soars, so does the misconception around what winners actually take home. Financial experts warn that while the thrill of becoming a crorepati is real, the financial pitfalls that follow can be devastating without the right strategy.
Speaking to Local18, investment expert Saras Jain says winning is just the beginning but what follows is a financial maze that can trip even the sharpest minds. According to Jain, a 30% Tax Deducted at Source (TDS) is immediately levied on such winnings, which means Ravi Kumar’s Rs 3 crore prize was trimmed by Rs 90 lakh, leaving Rs 2.1 crore in his account.
The deduction doesn’t end there. Come July, Ravi and others like him must file their Income Tax Return (ITR), where the remaining tax liability kicks in. For Rs 3 crore, the total tax owed is Rs 1.17 crore. With Rs 90 lakh already deducted, Ravi still owes Rs 27 lakh more. Failing to pay that can brand him a defaulter, along with interest and penalties.
After clearing all tax obligations, Jain said, Ravi is left with Rs 1.83 crore, still a big sum.
A big mistake, he said, is treating such lump-sum income like a permanent change in financial status. “This is not a recurring income. It’s a one-time gain that must be managed wisely to create lasting wealth. Without proper planning, it’s easy to go from cloud nine back to rock bottom,” he warned.
Jain recommends avoiding impulsive spending or investing large chunks in risky ventures. Instead, winners should aim to build a steady income stream and ensure their wealth is protected from market shocks and personal mismanagement.
A Five-Basket Investment Strategy
To turn a one-time jackpot into a long-term safety net, Saras Jain suggests dividing the remaining amount – say, Rs 1.83 crore – into five equal parts, each with a distinct purpose and timeline. Here’s how:
1. Very Long-Term Safety Net (20%)
Invest in Kisan Vikas Patra, where the amount doubles in approximately 9.5 years. Ideal for those looking for stable, government-backed returns.
2. Short-Term Assurance (20%)
Use the National Savings Certificate (NSC) to gain about 1.5 times your investment over five years, a safer short-term option.
3. Calculated Market Risk (20%)
Allocate a portion to market-linked instruments such as mutual funds or equities. While returns can be impressive, possibly doubling in 2–3 years, the risk of loss is also real, so this should be managed conservatively.
4. Asset Building Through Land (20%)
Investing in land or real estate can yield strong returns in a few years, especially in developing areas. It’s also a tangible asset that appreciates over time.
5. Self-Investment: Business Home (20%)
The final chunk can be used to upgrade one’s home or improve a business, but Jain cautions: Start small. Test the waters with your venture. Only scale up once you see sustainable growth.
