It’s the start of a new financial year and new beginnings are also accompanied with changes. We at PokerDangal are very happy to introduce our new TDS policy applicable from 9thApril 2019 onwards. TDS is one of the most keenly debated topic for all poker players and every operator has their own interpretation of the law. PokerDangal believes in passing the maximum benefit to the players and being the most compliant and transparent platform for online poker in India.
Starting, 9th April, we will be introducing a dual chip system which will be the most effective way to manage the TDS policy on Dangal. A player will have 2 wallets in their account, Player Wallet and Poker Chips wallet. The player wallet is similar to a player’s bank account and will be used for deposits and withdrawals on the platform. The poker chip wallet is the wallet to be used for buy-ins for cash games or tournaments on the platform.
A session is defined as a period between two successive conversions from the poker chips to the player wallet.
A user can deposit any amount to their player wallet (using any of the n number of codes available on the platform). A player can choose to then convert any amount from the player wallet to poker chips to play their favorite cash games or tournaments. A player can convert any amount, any number of times from their poker wallet to poker chips and vice-versa.
Players can convert their complete Poker Chips to the Player Wallet. TDS is applicable on the winnings (Withdrawal minus cumulative deposit in one session) above 10k in a single session is taxable as per the regulations. Players will get the advantage to offset their buy-ins made from Player Wallet to Poker Chips. Only complete conversion of the poker chips is allowed and partial conversions can’t take place. The money in the player wallet is available for instant withdrawal and there are no taxes to be paid for transfers from this wallet to the bank.
Here are a few examples to better explain the concept of a dual chip system and its benefits for calculating TDS
- 1 Rs. = 1 Poker Chip
- Player X deposits Rs 5000 using his credit card. His Player Wallet now shows Rs. 5000 balance.
- He converts Rs. 3000 to his Poker chips.
- He plays a tournament and loses all his chips.
- He converts another Rs. 1000 from his Player Wallet to Poker Chips.
- He plays at the cash tables with those 1000 Poker Chips and wins 29,000 chips.
- He again joins a tournament and loses 6000 chips.
- Now he requests a withdrawal from his Poker chips
- His current Poker chips is 24,000
- His cumulative deposits from Player Wallet to Poker chips are 3000 + 1000 = 4000
- His winnings are 24,000 - 4000 = 20,000
- TDS applicable = 30% of 20,000 = 6,000
- So, 18,000 (= 24,000 - 6000) will be added to his Player Wallet.
- His Player Wallet already had 1000, so it now becomes 19,000
- User can cash-out any amount up to 19,000 to his bank account, or move any part of that back to his Poker chips to play again.
A few things to note
- After every successful withdrawal from the Poker chips, it becomes a clean slate. Multiple deposits can happen from Player wallet to Poker chips between withdrawals, and the cumulative total (sum of all such deposits) will be considered as the deposit value while calculating taxable winnings
- Transfer can’t happen from Poker chips to Player wallet if the player has any balance on a cash table or has registered for any tournament which has not yet started.
- Any bonus chips given to the user are directly credited to the Poker chips and are not considered to be part of the user’s deposit amount. To take an example:
- User X deposited Rs 10,000 from his credit card to his Player Wallet.
- He then transferred this 10,000 to his Poker chips.
- PokerDangal gave him 2,000 bonus chips in his Poker chips.
- He played with the 12,000 chips, had a good run, and ended up with 40,000 chips. He then decided to withdraw those funds
- Winnings = Final balance - Deposits = 40,000 - 10,000 = 30,000. Note that the 2,000 is not included in “Deposits”. TDS is calculated as 30% of Winnings (=9,000) and the balance 31,000 is credited to his Player Wallet and is available to be freely withdrawn to the User’s bank account.
The PokerDangal support team is available to clarify any doubts and we are always happy to receive feedback on how we can better improve our policies to provide the best poker experience to our players.