Adda52 VIP Chips and TDS Policies
Q. What are VIP Chips?
A. The type of chips required to play Ring Games on Adda52.com.
Q. How can I play with VIP chips?
A. To play online poker Ring Game, you need to transfer your Poker Wallet balance to VIP Chips. When you take seat on a Ring Game table, your poker wallet balance is automatically transferred to VIP chips. Alternately, you can transfer your wallet balance to VIP chips from the game lobby. You just need to go to the “Cashier” tab and then click on“VIP”, Click on “ Poker Wallet to VIP” and enter the amount. Once you fill in the amount and click on “transfer” button, appropriate number of chips from your Poker Wallet will immediately be transferred to VIP Chips.
In case of insufficient VIP Chips balance for a Ring Game buy-in, the required balance will be automatically transferred from your Poker Wallet to VIP Chips to meet the buy-in criteria.
If you don’t have sufficient Poker Wallet Balance to play a tournament or SnG, you can transfer your VIP chips to Poker Wallet as well from the registration pop-up.
When the player leaves his seat in a Ring Game, any in-play balance is credited back to VIP Chips.
Taxation policy of Adda52.com
Section 194B of Income Tax Act states the following, “The person responsible for paying to any person any income by way of winnings from lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall at the time of payment thereof, deduct income tax thereon at the rates in force”.
On prize money of Rs. 10000 or more, the prize distributor (Adda52.com) is liable to deduct 30% TDS (Tax deducted at source). The winner will receive the prize money only after above-mentioned deduction.
TDS Calculation On Tournament and SNG Winnings
For tournaments (either single table or multi table) winnings of more than Rs. 10000, Adda52.com deducts TDS at the time of transferring winning amount into player’s poker wallet.
For example - Player A participates in a tournament with Rs. 3000 buy-in and wins Rs. 20000. Player’s actual winning here is 20000 - 3000 = Rs. 17000. TDS of 30% will be deducted from Rs 17000 and rest of the amount will be transferred to Player A’s poker wallet. The player is free to either withdraw or further invest his funds from his poker wallet.
TDS Calculation on VIP table Winnings
As per Income Tax Act section 194 B, Adda52 levies TDS on all VIP winnings above Rs 10000.
VIP winnings are calculated whenever a player transfers VIP chips back to his Poker Wallet. Let’s take an example: Player A transfers Rs. 5000 from Poker Wallet to VIP. This Rs 5000 will be player A’s buy-in amount into VIP. Assuming Player A plays and takes his VIP chip balance to 20000 chips playing on the Ring Game tables. His winning would be = 20000 – 5000 (Buy-in) = Rs 15000. In this case, the winning in more than Rs 10000 and tax @30% on the complete winning amount (i.e. Rs 15000) will be levied. Hence Player A will have a TDS of Rs 4500 (30% of Rs 15000) and the remaining amount of Rs 15500 (Rs 20000 – TDS of Rs 4500) will be transferred in his Poker Wallet.
Example 2: Player A converts/transfer Rs. 5000 from poker wallet to VIP. Assuming Player A loses and is left with only 2500 VIP chips. In this case, Player A can transfer these 2500 VIP chips into Rs. 2500 in Poker Wallet without any tax deduction as there are no winnings.
Important Rules Regarding TDS calculation on Winnings on VIP tables:
1. Adda52 does not allow partial transfer of VIP chips to Poker Wallet. Players have to compulsorily transfer all existing VIP chips to their Poker Wallets when they decide to end their VIP session.
2. Each time a player ends the VIP session and transfers VIP chips to Poker Wallet, all accumulated losses or winnings are squared off and not carried forward. Next time the player transfers Poker Wallet Balance to VIP chips, his calculation for VIP winnings will start afresh for the new VIP session. Eg: Player A transfers Rs. 5000 from poker wallet to VIP chips, loses all and again buys 5000 VIP chips. This time he wins 4000 VIP chips taking his total VIP chip balance to 9000. In this case his buy-in amount is 5000 + 5000 = 10000. He now transfers his 9000 VIP chips to Poker Wallet, no TDS will be levied and his VIP session is ended. Again if Player A now transfers another Rs. 5000 from wallet to VIP chips, none of his previous buy-ins will be considered in calculating the Total Buy-ins during his next TDS calculation at the time of VIP to Poker Wallet transfer. In other words, only VIP buy-ins after the last VIP to Poker Wallet transfer are considered for TDS calculations.
3. VIP chips can be left as it is till 31st March of each year, after which Adda52 will automatically end the VIP session and transfer all VIP chips to Poker Wallet and deduct tax accordingly based on individual player winnings. This is done as per Government of India regulations to calculate VIP winnings of each player for the complete financial year and issue TDS Form 16.
Note: Players can end their VIP session and transfer ALL their VIP Chips to Poker Wallet anytime they want. However, it is advisable that players do not transfer VIP Chips to Poker Wallet frequently to avoid multiple tax deductions and inconvenience of having to transfer Poker Wallet balance to VIP Chips whenever the player wants to play on Ring tables.
4. At the end of every financial year i.e. 31st March, all the VIP sessions are ended and VIP chips are automatically transferred back to your Poker Wallet. This happens without any user action and is mandatory and done automatically by the server. The conversion will be done at 6 AM 31st March.
Eg. Conversion will be done on 31st March 2019 for the financial year ending 31st March 2019.
1. Winnings and Losses will be calculated up to the time conversion happens and not up to 12 midnight of the last day of the quarter.
2. Winning is calculated when you transfer VIP Chips to Poker Wallet. If you convert at a time when your winnings are less than 10K, no TDS will be deducted.
3. Adda52.com calculates TDS on the basis of Section 194B of Income Tax Act. You will get TDS certificate from us which you can use at the time of filing your annual IT return. We submit the TDS to the government in the first week of every month and file a TDS return every quarter end. Your Pan number is required to apply for TDS certificate
4. As per Indian Income Tax Act, every person is liable to pay his due taxes to the government on his own. Adda52.com 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.