Adda52 introduced new TDS policy following its philosophy- “For the players, by the players”

In an exclusive interaction with Naveen Goyal, CEO, Adda52 speaks to us about the new TDS policy

With the beginning of the new decade,, India’s largest Poker website, has formulated a new policy for the benefit of the Poker community effective 2nd January 2020., as the category leader, has always followed “for the players, by the players” mantra when it comes to providing maximum value to the users. As a result, a new policy of taxation has been introduced on winnings in Ring Games, Tournaments and Sit & Go. From now on, all forms of Poker games will be played with VIP chips and the prize money will be credited to the ‘VIP’ wallet.

In an exclusive interaction with Naveen Goyal, CEO, Adda52 speaks to us about the new TDS policy.

Q1. What made you introduce new TDS policy? 

Being the leader in the online Poker industry, we have a responsibility towards our players, and we are constantly working towards improving the players’ experience on our platform. Following our philosophy of “for the players, by the players”, new TDS policy has been introduced to simplify the taxation process and enable the players to focus more on the game and continue to enjoy the game on the platform.

Q2. Please explain how new policy would work?

As per the policy, 30 percent TDS will be deducted on Net Winnings of 10,000 and above, at the time of VIP chips (poker chips) to Poker Wallet Conversion. The Net Winnings will be calculated every time a player converts VIP Chips to Poker Wallet.
Net Winnings (in a financial year) = Total Withdrawal – Total Deposit

Q3. Do you provide a TDS Certification when tax is subtracted from the winning amount?

Players will get a TDS certificate from Adda52 which they can use at the time of filing their annual IT return. Adda52 submits the TDS to the government in the first week of every month and file a TDS return every quarter-end.

Q4. Does the player need to provide any information for TDS?

In compliance with the government rules, PAN Card details will be required to issue the TDS certificate.

Q5. How is this going to help players? 

There are two objectives to it. Firstly, the new TDS policy will help the poker players in calculating their tax implications better. Since, the tax liability will be calculated on all games cumulative at the time of withdrawal, players can play any game of their choice from the same wallet & offset their wins/losses.
Secondly, the policy is in line with other professions in terms of tax calculation on annual earnings. The Poker players are no less than other professional players and this needs to be recognized by one and all.