PokerDangal TDS Policy
As per the new Government Tax (TDS) Law 30% of Net winnings in a given Financial Year is deducted at the time of withdrawal on PokerDangal. The Deposit and withdrawal ledgers become 0 for every player on 1st April 00:00:00 every year.
Key Pointers :
• 30% TDS on PokerDangal will be deducted for players at the time of withdrawal
• TDS is deducted for players only on the amount which is Net winnings in the Financial Year
• Net Winnings = Opening Balance of players (on 1st April)+ Deposit in a Financial Year – Winnings in a Financial Year
*Financial Year is counted from 1st April to 31st March
Q. How is the TDS calculated on winnings?
As stated above, TDS is calculated on Net Winnings of a player (Transfer of chips from Poker chips to Player Wallet -Transfer of chips from Player Wallet to Poker Chips). Net Winnings is calculated every time you convert Poker chips to Player Wallet. This gives you the benefit of covering all wins/losses in a Financial Year.
For more detailed understanding please refer to the example below :-
If a players has Opening Balance as 0 and Deposits Rs 10,000 in a Financial Year. After playing the user has a balance of Rs 12000 in the same Financial Year.
Now the TDS will be deducted at the time of withdrawal on Rs 2000 (which is the win balance).
Rs 600 (30% of 2000) will be deducted and 11400 will be credited to the players bank account.
If a players has Opening Balance as Rs 1000 and Deposits Rs 10,000 in a Financial Year. After playing the user has a balance of Rs 12000 in the same Financial Year. Now the TDS will be deducted at the time of withdrawal on Rs 1000 (which is the win balance). Rs 300 (30% of 1000) will be deducted and 11700 will be credited to the players bank account.
Important Rules Regarding TDS calculation on Winnings:
1. Players may maintain their Poker chips balance as it is till 31st March of each year, after which PokerDangal will automatically deduct 30% TDS (if applicable) on net winnings for the year. This is done as per Government of India regulations after calculating net winnings of each player for the complete financial year and issue corresponding Form 16.
2. This happens without any user action and is mandatory and done automatically by the servers. The TDS deduction (if applicable) will be done at 11:59:59 PM on 31st March.
3. PokerDangal will issue a TDS certificate to all its users which players can use at the time of filing their annual IT return. The deducted TDS is submitted to the government in the first week of every month and TDS return is filed every quarter-end.
4. As per the Indian Income Tax Act, every person is liable to pay his due taxes to the government on his own. PokerDangal is not responsible to fulfil player’s personal tax-related liabilities in any situation. It is advisable to hire the services of a professional financial accountant to calculate and file income tax returns.