No one can tell when and how fate will change. Because the work done by an ordinary Indian living in Abu Dhabi made him a millionaire. An Indian teenager has won the biggest lottery in the history of Dubai. Its value is around 240 crore rupees. But here are the interesting facts behind the lottery success. On the other hand, after receiving such a large amount, many people doubt how much will be lost in the form of taxes.
Who won the lottery?
The name of Anil Kumar Bolla, a 29-year-old expatriate Indian living in Abu Dhabi, is going viral. Because he won the biggest lottery in UAE. Its amount is 100 million dirhams, which is about 240 crore rupees in Indian currency. The win was recorded in Draw #251018 of the UAE’s new national lottery system Lucky Day Draw held on 18th October. As soon as the results were announced, Anil Kumar Bolla became the head of crores of rupees.
What is the process of this lottery?
UAE Lucky Day Lottery is slightly different from other lottery systems. In this, each person has to pay just Dh100 (roughly Rs. 2460) to buy a digital ticket. Each ticket is assigned a number. The draw system will select that number automatically. The organizers said that there will be no human intervention in this process. The government has confirmed that this system is fully digital and transparent.
Tax on lottery prize money?
Now the biggest question is..how much tax will the winner have to pay on this 240 crore rupees?. The biggest happiness for this person is that winning the lottery in UAE is completely tax free. Winner Anil Kumar does not have to pay any tax to the local government. If he remits this amount to India he will have to pay the relevant taxes. As per Indian Income Tax Act 1961, 30% tax is payable on lottery winnings. A surcharge of 15% (if above Rs 1 crore), 4% health and education cess will be added to this. That means the total tax burden will be around 35.88%. According to this calculation, in India, 240 crore rupees lottery money has to be paid in the form of tax up to 86 crore rupees. The winner will get around 154 crore rupees only
When to pay tax
Many NRIs living in India often think that lottery winnings abroad do not have to pay tax, but this is not entirely true. The tax rule depends on whether the winner is a resident or non-resident of India. If the individual is NRI and the whole is not transferred to India, no tax is levied. But money in any form must not pay taxes to India.
What AP people say about lottery win..
Anil Kumar said that he got lucky by choosing his mother’s birthday date as the lottery ticket number. Bolla Anil Kumar (29) from AP has been staying in Abu Dhabi, UAE for the past few years. Anil Kumar, who is in the habit of buying lottery tickets, this time took his mother’s birthday as the last number of the lottery and luck knocked on his door. He said that in UAE, there is no need to pay a single rupee of tax, but in India, almost Rs. 90 crores would have gone under the tax. He said that he wants to bring his parents to Abu Dhabi and settle there. Anil Kumar said that he will give some money to charities.. He will buy a luxury car. He said that there is no special plan on lottery prize money.
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