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Online poker in the country has grown by leaps and bounds these last few years and a poker player today is spoilt for choice when it comes to picking an online site to play. So what does a player look for in an online site – software? – action? – cool promotions? – big GTD tournaments? – support? – well apparently for Indian players another critical factor is the site’s TDS policy.
Every year around the tax filing season when players are crowding around the CA`s office comes the sudden realization of the vastly different tax policies adopted by various sites. Frustration starts creeping in, and more often than not, Social Media becomes the medium of expression. This year has been no different and with the deadline for individual tax filing fast approaching, the last few days have seen a larger group of players voicing dissent against online site`s following draconian policies, especially with regards to TDS.
Now, one could argue that players can always apply for a TDS refund if they feel that the operator incorrectly deducted excessive TDS. However, there are three significant downsides here as well.
So while there were heated debates on the various TDS policies adopted by online sites raging amongst the community came a rather pleasant announcement from Poker Dangal. The site came out with what can best be described as one of the best TDS policies in the industry at the moment. Announcing the change, Poker Dangal’s co-founder Karan Gandhi, clarified that w.e.f August 8, players on the site would be allowed to instantly withdraw less than ₹10,000 three times in a day without attracting any TDS. The change essentially means that players content with cashing out up to ₹29,997 in a day at Poker Dangal, will not have to worry about TDS at all. However, that does not absolve them of their responsibility to pay income tax according to their total earnings at the end of the financial year.
Like many of its peers, PokerDangal too has a Dual Wallet system which consists of a “player wallet” and a “poker chips wallet.” The player wallet acts similar to a player’s bank account while the poker chips wallet’s balance can be used to play cash games or tournaments on the site.
Previously, on Poker Dangal, the TDS was applicable on wallet transfers, but since August 8, TDS gets calculated only on withdrawals. A player will, however, need to convert the “entire poker chips balance” to the Player Wallet before placing a withdrawal request. It`s important to note that while the smaller withdrawals do not incur TDS, a flat 30% TDS is applicable on all withdrawal requests over ₹9,999 regardless of whether the player in question is in profit or loss on the platform.
*PLEASE NOTE: Always consult with a qualified and competent CA before filing your Tax Returns.
We will be following this up with a more detailed feature comparing the TDS policies adopted by some of the leading online poker sites in the country.