Government Specified TDS Law
Under Section 194B of the Income Tax Act, 30% tax is deducted on any prize money in excess of Rs 10,000 and other winnings from games, lotteries etc. This is deducted at source (TDS).
What has Changed
Starting April 2019, we will be introducing a dual chip system A player will have 2 wallets in their account, Player Wallet and Poker Chips wallet.
Player wallet, which acts like a player bank account
Poker chips, which is used on cash tables/ tournaments
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 user can deposit any amount to their player wallet (using any of the payment gateways). 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. 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.
A few things to note
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.