Frequently Asked Questions about Adda52 New TDS Policy
Effective 2nd January 2020, 7:00 am, Adda52 introduces a new policy for taxation on winnings in ring games, tournaments, and Sit & Go. All forms of Poker games will be played with VIP chips (real cash, instant bonus, and tournament bonus) & prize money will be credited to VIP wallet. TDS will be applicable on Net Winnings calculated at the time of VIP to Poker Wallet Conversion.
New TDS Policy
- 30% TDS will be deducted on Net Winnings of above 10,000 at the time of VIP to Poker Wallet Conversion
- As per the new policy, Net Winnings will be calculated every time a user coverts VIP Chips to Poker Wallet. Net Winnings = Total Withdrawal – Total Deposit
- The Net Winnings will be calculated based on overall gameplay in a Financial Year.
Note: In the above statement, Withdrawal mean VIP Chips converted to Poker Wallet & Deposit means amount brought into VIP Wallet.
- What are VIP Chips?
- Chips used to play play online poker gameson Adda52 are VIP Chips.
- How can I get VIP Chips?
- When you take seat on a cash game table, register into a tournament/Sit & Go, do re-buy or add-on, etc, the buy-in amount is automatically transferred to VIP chips from your Wallet.
Tournament bonus cannot be used to play on cash tables. To join a cash game, you need to pay the buy-in using real cash or real cash + instant bonus.
Similarly, you cannot use instant bonus to join Multi-table Tournament and Sit & Go tables. Only real cash or real cash + tournament bonus can be used to get registered to play.
- How is VIP winnings credited?
When you leave seat from a Ring Game cash table, your table balance is credited back to VIP Chips wallet. When you win a prize in a tournament or a Sit & Go, the amount is credited as VIP Chips. While converting from VIP to Poker wallet, the "chips to be converted" ratio of (Real, Instant Bonus, Tournament Bonus) will be the same as the ratio in VIP wallet.
- How is the TDS calculated on winnings?
As stated above, TDS is calculated on Net Winnings of above Rs 10,000 (Total Withdrawal - Total Deposit) at the time of VIP to Real conversion. Net Winnings is calculated every time you convert VIP to Poker Wallet. This gives you the benefit of covering all wins/losses in a Financial Year.
To understand more, take a look at the below scenarios:
To start, you deposit Rs 1000 in your wallet & play ring game cash table. You leave seat with 10,000 which is credited to your VIP Chips Wallet. Now, you convert VIP chips to Poker Wallet.
Net Winnings = 10,000 – 1,000 = 9,000
10,000 will be added your Poker Wallet without TDS. You may withdraw it or reuse to play games.
You put 3000 in your VIP wallet again. With 1000 chips you take seat on a ring game cash table and leave seat with 10,000. This 10,000 gets added to your VIP balance. Your VIP balance is now 12,000.
Again you play a tournament with 500 TB & win 10,000. This 10,000 tournament payout is also added to VIP balance. You VIP balance is now 21,500.
Now, you convert VIP chips to Poker Wallet.
Net Winnings = Total Withdrawal (10,000+21,500) – Total Deposit (1,000+3,000) = 27,500 which is greater than 10,000.
30% TDS will be deducted on 27,500. 19,250 will be added to your Poker Wallet after 8250 TDS.
On any day, if your net winnings at the time of VIP to Poker Wallet conversion goes below 10,000, no TDS will be deducted. E.g. Your total deposits in VIP before the end of FY is 40,000 but your total withdrawal till date is 48,000. Hence, no TDS will be deducted.
- What is Partial VIP Conversion? How is TDS calculated?
Now users can transfer the chips partially from VIP balance to Poker Wallet without any restrictions.
Whenever a user transfers the partial amount from VIP balance to Poker Wallet, first his winning will be taken out and after that the remaining VIP balance will be taken out. TDS will be deducted as applicable.
In case, his remaining balance has a mixture of IB, TB, and Real, then the partial transfer ratio of IB, TB, and Real will be the same as the ratio of remaining IB, TB, and Real of VIP balance.
Steps to transfer:
- Enter the amount to be transferred
- Click on the "Calculate TDS" button to calculate the applicable TDS on that amount. Once you click on the "Calculate TDS" button, TDS applicable and Net Chips to be transferred with bifurcation of chip types will be shown on the screen.
- Click on the "Transfer" button. A confirmation message will be shown.
- Click on "Proceed" to confirm.
Important Rules Regarding TDS calculation on Winnings on VIP tables:
- You may maintain your VIP chips as it is till 31st March of each year, after which Adda52 will automatically transfer all VIP chips to Poker Wallet and deduct tax accordingly based on net winnings for the year. This is done as per Government of India regulations to calculate net winnings of each player for the complete financial year and issue TDS Form 16.
- 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.
- com calculates TDS on the basis of Section 194B of Income Tax Act. You will get a 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.
- As per the 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.