Q. What is a VIP table?
A. VIP tables are high stakes poker tables at Adda52.com. The chip type used on these tables is VIP.
Q. How can I play on a VIP table?
A. To play online poker on a VIP table, you need to convert your Real Chips into VIP chips. When you take seat on a VIP table, the real chips are automatically converted to VIP chips. Alternately, you can convert real chips to VIP chips from the game lobby. You just need to go to the “VIP Chips” tab and then click on “Convert Real to VIP Chips”. Once you fill in the amount, appropriate number of Real Chips will immediately be converted into VIP Chips.
Q. What is the policy of TDS deduction while converting VIP chips back to Real?
A. As per Government of India regulations, Adda52 levies TDS on all VIP winning above Rs 10000.
VIP winning are calculated whenever a player converts VIP chips to Real Chips. Let’s take an example: Player A converts 5000 from Real chips 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 VIP 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 converted into Real chips and credited into his account.
Example 2: Player A converts 5000 Real chips to VIP. Assuming Player A loses and is left with only 2500 VIP chips. In this case, Player A can convert these 2500 VIP chips into 2500 Real chips without any tax deduction as there are no winnings.
Important Rules Regarding TDS calculation on Adda52:
Ø Adda52 does not allow partial conversion of VIP chips to Real. Players have to compulsorily covert all existing VIP chips in case they want to convert VIP chips to Real chips.
Ø Each time a player converts VIP chips to Real chips, all accumulated losses or winnings are squared off and not carried forward. Next time the player converts Real chips to VIP chips, his calculation for VIP winnings will start afresh. Eg: Player A buys 5000 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 converts his 9000 VIP chips to Real, no TDS will be levied and his account for this transaction is closed. Again if Player A now buys another 5000 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 Real conversion. In other words, only VIP buy-ins after the last VIP to Real conversion are considered for TDS calculations at the time of VIP to Real conversion.
Ø VIP chips can be left as it is till 31st March of each year, after which Adda52 will automatically convert all VIP chips to Real chips 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 convert VIP Chips to Real Chips of vice-versa anytime they want. However it is advisable that players do not convert VIP Chips to Real Chips frequently to avoid multiple tax deductions and inconvenience of having to convert Real into VIP Chips whenever the player wants to play on high stake tables.
Q. Tips to minimize TDS deduction?
A. If possible, convert from VIP to real chips rarely. If you convert at a time when your winnings are less than 10K, no TDS will be deducted.
1. Winning is calculated when you convert your VIP chips to Real.
2. You can take a TDS credit if you provide your PAN number to us. We submit the TDS to the government in the first week of every month and file a TDS return every quarter end. Therefore, if we receive your PAN number, you can take credit for that amount while filing your annual IT return.
3. At the end of every financial year i.e. 31st March, all the VIP chips are automatically converted back to real chips. This happens without any user action and is mandatory and done automatically by the server. The conversion will be done between 6 AM to 8 AM on the first day of the new new financial year. Eg. Conversion will be done on 1st April 2015 for financial year ending 31st March 2014.
Please Note: Winnings and Losses will be calculated upto the time conversion happens and not upto 12 midnight of the last day of the quarter.