TDS Policy

Taxation Law


Under Section 194(B) of Income Tax Act states the following, “The person responsible for paying to any person any income by way of winnings from lottery or crossword puzzle or card game and other game of any sort in an amount exceeding ten thousand rupees shall at the time of payment thereof, deduct income tax thereon at the rates in force”

On prize money (Net Winnings) of Rs. 10,000 or more in a financial year (April 1st to March 31st 11:30 PM), Company is liable to deduct 30% TDS + Surcharge and Cess (Tax deducted at source). The winner will receive the prize money only after the above-mentioned deduction. Players will get a TDS certificate after each quarter from us which he/she can use at the time of filing his annual IT return.

As per Indian Income Tax Act, every person is liable to pay his due taxes to the government on his own. PokerNXT is not responsible for fulfilling a player's personal tax-related liabilities in any situation. It is advisable to hire the services of a professional financial accountant to calculate and file income tax returns.

Player will get a TDS certificate from us which he/she can use at the time of filing his annual IT return. As per Indian Income Tax Act, every person is liable to pay his due taxes to the government on his own. Company is not responsible to fulfil a player's personal tax-related liabilities in any situation. It is advisable to hire the services of a professional financial accountant to calculate and file income tax returns.

Tax Calculation at PokerNXT


Taxable Winnings = ( [Total withdrawals] - [Total deposits ] ) - [sum of winnings amount taxed already]

To explain this better, find the examples below or contact [email protected] to get an insight into your personal taxable withdrawals. The duration during which your taxes are calculated are from 1st April every year to 31st March 11:30 PM.

Example 1: If you deposit 50,000 INR on 2nd April and win 9999 INR, and convert 59,999 (50,00 deposit and 9,999 winnings) No TDS will be deducted since your net winnings till now are only 9,999. However, every winning after this point will be subject to a 30% TDS. Let’s say a player makes a 5000 INR deposit after the withdrawal and wins 5000 INR and tries to withdraw 10,000 INR(5000 Deposit + 5000 winnings), He will have to pay a 30% tax on 5000 INR that he has won

Example 2: If you Deposit 40,000 INR and win 30,000 INR. Your net Balance is 70,000 INR . When you withdraw the 70,000 INR; you will be taxed 30% on 20001 INR (70,000 - 40,000 deposit - 9999 eligible tax free winnings for the first time in a financial year). When you deposit 40,000 Again, and win 30,000 INR again in the same year and withdraw the 70,000, you will be taxed on 30,000 INR at 30% TDS.

Example 3:
When are tax liabilities calculated for players on PokerNXT:
On every conversion of chips from ‘Poker Wallet’ to ‘Cash Wallet’ On 31st Match, 11:30 PM.(All Poker wallet chips automatically get converted into cash wallets chips and corresponding tax is deducted from it) Note: TDS shall only be deducted if the winning amount exceeds Rs. 9999. TDS shall not be deducted on the Deposit amount.

KYC: As per government guidelines, only people with a verified KYC on PokerNXT with an associated PAN will be allowed to put in any withdrawal requests. Please make sure that KYC is completed before placing a withdrawal request or ending a financial year.