Wide Banner 728

Wide Banner 728

A New Financial Year Sets Off! A Look at the TDS Policies Across Major Domestic Sites

TDS Policies of Domestic Online Poker Sites
  • Profile picture
  • Arpit Jain April 7, 2021
  • 3 Minutes Read

The financial year recently got over, and it’s unsurprising to see that taxes have become the most talked-about topic in the poker community. As the mad rush for compiling the yearly statements and filing taxes takes center stage, TDS, or the Tax Deducted at Source on poker winnings, have been brought back in focus.

Poker winnings fall under Section 194B of the Income Tax Act, 1961, requiring all operators to deduct 30% TDS on net winnings (plus a cess of 4%, i.e., at 31.2%) over ₹10,000. While most poker sites follow the same process of deducting TDS basis net profits (the difference of net deposits and withdrawals in a financial year) at the time of cashouts, some sites have additional caveats and benefits.

All the major sites like Spartan Poker, PokerStars India, PokerBaazi, and Adda52 compute taxes on more or less the same logic, while others like Khelo365 fill in the tax liability on behalf of players. Yes, you read that right!

Moreover, some sites make a system-generated TDS deduction from player balances on March 31, while others carry forward the balance to the next financial year.

Furthermore, Adda52 and PokerBaazi have changed their TDS policies w.e.f. April 1, 2021.

We received many player messages inquiring about the TDS policies of poker sites. To put the matter to rest, we have compiled the TDS policies of all the major online poker sites in India below.

 

Spartan Poker

> TDS Deduction Methodology: As a Part of Quadnet Network, like other poker rooms on the network, all deposits, and cashouts are processed by parent company Quadrific Media Pvt Ltd.

30% TDS is deducted on the net winnings (withdrawals till date – deposits till date) greater than ₹10,000 in a financial year, at the time of the withdrawal, and not on a players’ deposit amount.

> Tax Deduction on March 31: Spartan Poker does not follow a server-generated automatic calculation of outstanding net winnings of a player and resultant TDS at the end of the financial year. This means that at 11:59:59 PM on March 31, players’ net winnings are not calculated, and tax deducted. Rather, the benefits are forwarded to the player’s account for the next year.

> TDS Related Promotions: The site offers 30% TDS refunds on specified net winnings to players at the top two VIP level tiers, Elite and Gladiator.

 

BLITZPOKER

> TDS Deduction Methodology: Part of Quadnet Network so like all poker rooms on the network, deposits, and cashouts are processed by parent company Quadrific Media Pvt Ltd.

30% TDS deducted on net winnings (withdrawals till date – deposits till date) greater than ₹10,000 in a financial year, at the time of the withdrawal, and not on a players’ deposit amount.

>Tax Deduction on March 31: BLITZPOKER does not follow a server-generated automatic calculation of outstanding net winnings of a player and resultant TDS at the end of the financial year. This means that at 11:59:59 PM on March 31, players’ net winnings are not calculated, and tax deducted. Rather, the benefits into player’s account are forwarded for the next year.

> TDS Related Promotions: The site offers 30% TDS refunds on specified net winnings to players at the top two VIP level tiers, Champion and the Legend.

 

PokerStars India

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (withdrawals till date – deposits till date) over ₹10,000 in a financial year at the time of withdrawal.

NOTE: If a player accumulates net winnings of over ₹2 Lakhs in any quarter (single or cumulative payment), 30% TDS is charged on all future payments of net winnings from there on irrespective of the amount.

> Tax Deduction on March 31: The site follows a system-generated calculation of 30% TDS (on player balances) if net winnings are above ₹10,000 at 11:59:59 PM on March 31, wherein outstanding TDS gets deducted and the remaining balance re-deposited into the player’s wallet afresh for the next financial year. The process is automated by PokerStars India and requires no action from players.

 

PokerBaazi

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (withdrawals till date – deposits till date) above ₹10,000 in a financial year at the time of withdrawal.

PokerBaazi has revised its TDS policy, announcing that after the last ledger reset at 00:00:01 AM on April 1, 2020, there will be no more resets in the deposit on the withdrawal ledger, and all TDS calculations will be made from April 1 onwards.

> Tax Deduction on March 31: Follows a system-generated calculation of 30% TDS (on player balances) if net winnings are above ₹10,000 at 11:59:59 PM on March 31.

> TDS Related Promotions: For tax deductions of up to ₹30,000, PokerBaazi offers a 100% TDS refund in the form of Real Cash Bonus (RCB).

 

Adda52

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (withdrawals till date – deposits till date) above ₹10,000 in a financial year at the time of the withdrawal.

> Single Wallet System: The site has switched from a dual wallet system to a single wallet for deposits, withdrawals, or gameplay from the new financial year. Henceforth, there will be no reset of accounts. All the profits & losses of a player will be carried forward for a lifetime, and a single wallet will show the player’s Real Money, Instant Bonus, and Tourney Bonus.

> Tax Deduction on March 31: The site follows a system-generated calculation of 30% TDS (on player balances) if net winnings are above ₹10,000 at 11:59:59 PM on March 31.

 

Khelo365

> TDS Deduction Methodology: Khelo365 computes TDS at the time of redemption of net winning above ₹10,000. However, the site does not deduct any TDS and pays 100% TDS on the player’s behalf as part of their promotions.

 

Pocket52

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (withdrawals till date – deposits till date) above ₹10,000 in a financial year.

> Tax Deduction on March 31: The site follows a system-generated calculation of 30% TDS (on player balances) for net winnings above ₹10,000 at 11:59:59 PM on March 31. The remaining real cash balance for the year 2020-2021 would be considered as a deposit for the current fiscal year FY-21.

 

9stacks

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (your final poker balance – deposits since the last withdrawal) above ₹10,000 at the time of withdrawal.

> Tax Deduction on March 31: Follows a system-generated calculation of 30% TDS (on player balances) if net winnings are above ₹10,000 at 11:59:59 PM on March 31.

 

NostraPoker

> TDS Deduction Methodology: 30% TDS is deducted on net winnings (withdrawals till date – deposits till date) above ₹10,000 in a financial year at the time of withdrawal.

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Top Online Poker Rooms

Top
PokerGuru