240 crore UAE lottery: The incident of Indian youth Anilkumar Bolla winning ₹240 crore in the United Arab Emirates (UAE) lottery has been a frequent topic of discussion on social media. 29-year-old Anilkumar won the first Dh100 million (around ₹240 crore) jackpot in the ‘Lucky Day Draw’ by picking his mother’s birthday. The full amount will be credited to his account as there are no taxes in the UAE. But, there is a debate on whether to pay this tax in India. Tax experts clarify that it depends on his ‘tax residency’ status. They say 30% tax if Resident Indian (RI) and no tax if NRI.
UAE Lottery officially started in 2024. Anilkumar Bolla became the first jackpot winner in the 23rd ‘Lucky Day Draw’. He picked the numbers using the ‘easy pick’ option, saying the last digit reflected his mother’s birthday. “I didn’t do anything magical, just picked an easy pick. The last number was very special – it was my mother’s birthday,” Anil Kumar said in an interview with lottery officials. In UAE this lottery is conducted in digital format, small prizes are also given to the runners-up.
There is no tax in UAE
There is no tax on the winning amount in this lottery approved by the UAE government. “Dh100 million will be fully credited to the winner,” UAE lottery officials announced. It is in line with UAE income tax policies as there is no personal income tax. Lottery winnings in India are taxed under ‘Income from other sources’. 30% flat rate + 4% cess (approx. 31.2%) payable, no deductions. But, taxation of foreign winning amount depends on residency status:
Resident Indian (RI) means a person who stays in India for 182 days or more in a fiscal year. Their global income including foreign lottery is taxable in India. If Anilkumar is RI, about ₹75 crore will be paid as tax on ₹240 crore. As per DTAA (Double Taxation Avoidance Agreement) tax paid in UAE can be taken as credit but full amount of tax has to be paid as there is no tax there,
Non-Resident Indian (NRI) but less than 182 days is treated as NRI. Only Indian source income is taxable to them. Foreign lottery winnings are not taxable to NRIs. As Anilkumar resides in the UAE, he may be an NRI – potentially tax-free. However, TDS is levied if the money is transferred or invested in India.
Read more
