Tax deducted at source

Net winnings on PokerStars.IN are subject to the Tax Deducted at Source (TDS) amount withheld, which is submitted to the Indian tax authorities under Section 194B of the Income Tax Act.

TDS is applicable and will be deducted at the time of payment, which is when a player's net winnings are calculated.

Payment of net winnings is subject to TDS at the rate of 30% if such amount is in excess of 10,000.

If the payment of net winnings is less than 10,000, no TDS or tax is applicable.

For example:

  • A player deposits 10,000
  • The player brings 2,000 of that to play a game and wins 15,000
  • Their Cashier balance is now 23,000: 13,000 is their net winnings + 10,000 their previous deposit
  • Player requests for a withdrawal of their total balance of 23,000
  • For the deposit amount, i.e. 10,000, no tax will be withheld and the player will be refunded these funds.
  • The remaining amount is 13,000, on which 30% withholding tax will be applied before the payment is made to the player

Additionally, any player that has received a single or cumulative payment of net winnings greater than or equal to 2,00,000 (two lac) in any given quarter, will be charged a 30% TDS on all future payments of net winnings from there on irrespective of the amount.
This counter is reset at the end of the financial year and starts from scratch on April 1.

Tax compliance process

In compliance with Indian regulations, we are required to finalize player accounts at the end of every financial year, as a result here’s what you need to know:

  • Players whose Net Winnings as of 31st March 23:59 hrs are greater than ₹10,000, TDS will be deducted and calculated as per our usual policy 
  • Any remaining balance will be re-deposited into the Player’s wallet afresh into the new financial year
  • This will be a fully automated process on our side and there is no action required by the players

For example:

  1. Your total balance as of March 31, 2021, is ₹30,000
    • The previous rolling deposit is ₹10,000
    • Net winnings are ₹20,000
    • Since net winnings are greater than ₹10,000, TDS will be calculated as 30% * ₹20,000 = ₹6,000 will be automatically deducted from your balance
    • ₹24,000 will be considered as a fresh Deposit into the next financial year

  2. Your total balance as of March 31, 2021, is ₹30,000
    • The previous rolling deposit is ₹20,000
    • Net winnings are ₹10,000
    • Since net winnings are not greater than ₹10,000, no TDS will be deducted in this case
    • ₹30,000 will be considered as a fresh Deposit into the next financial year

For more information, click here.

Feedback

Was this article helpful?

Related Help Articles