We were the first poker company in India to introduce a Dual Chip system that keeps the taxation on your poker winnings clean and simple. We’re delighted to say that this has now become the industry norm.
So what is the Dual Chip system?
When you login to your 9stacks account, you will see that you have 2 kinds of chips:
- User chips, which sit in your User Balance
- Poker chips, which sit in your Poker Balance
When you first register on 9stacks to play real money poker, both these balances will be set to zero.
This is the link between your bank account/credit card and 9stacks. Whenever you deposit money using one of our payment gateways like PayU or Paytm, we will deposit an equivalent number of user chips in your user balance. I.e., if you deposit ₹5000, you will get 5000 user chips.
Your user balance is freely withdrawable at any time. In the taxman’s terms, your user chips are just sitting in your account and not yet ‘in the game’. So you can cash out any amount from your user balance at any time without any TDS implications.
(2a) Poker Chips: Your poker balance is what you use to play poker on cash tables or tournaments. You do this by moving some or all of your user chips to your poker balance, where they will show as an equivalent number of poker chips.
(2b) Bonuses: Any bonus you earn on 9Stacks is credited directly to your poker balance.
(3) Gameplay: Once you’ve loaded up your poker balance with chips, you can use those to play on cash tables or to enter tournaments.
(4) Withdrawals: When you want to make a withdrawal, you do that by moving your chips from your poker balance to your user balance after your game cycle ends. Please note that you are allowed to make a withdrawal request only for the full amount in your poker balance. You are not allowed to transfer a part of your winnings from your 9stacks account.
(5) Taxation: If your winnings exceed ₹10,000, we will deduct TDS at 30% and transfer the remaining to your user balance. (We will, of course, issue you a TDS certificate because what you’re playing on 9stacks is completely legal poker!).
READY TO START PLAYING?
Here is an illustrative example:
- Amit deposits ₹5,000 using his credit card. His user balance now shows 5000 user chips.
- He moves 3000 chips to his poker balance. Now he has 3000 poker chips to play with.
- He plays a tournament and loses all his chips. Bummer! So he moves another 1000 chips from his user balance to his poker balance.
- He now plays at cash tables with these 1000 chips and wins ₹30,000.
- He joins a tournament again but loses 6000 chips. (Clearly, he’s better off playing at cash tables!) His current poker balance is 30,000 - 6000 = 24,000.
- He now decides to make a withdrawal. (As mentioned, he has to withdraw all 24,000 and not a part of it.) Here’s how the withdrawal will work:
- His total deposit has been 3000 + 1000 = 4000
- His winnings are 24,000 - 4000 = ₹20,000
- TDS applicable = 30% * 20,000 = ₹6000
- Final withdrawable amount = 24,000 - 6000 = ₹18,000. This will be added to his user balance.
- His user balance originally contained ₹1000 (from his ₹5000 deposit). It will now become ₹19,000.
Amit can cash out any amount up to ₹19,000 from his user balance to his bank account or move it to his poker balance to play again.
Some points to note:
- After every withdrawal, your poker balance drops to zero because only complete withdrawals are allowed.
- Between withdrawals, you can make any number of deposits to your poker balance and their total will be considered while calculating taxable winnings.
- Any bonus poker chips you get from us will be directly deposited to your poker balance and not considered part of your deposit.
- Amit has 10,000 left in his poker balance, all of which came from his deposit to his user balance.
- We (9Stacks) gave him 2000 bonus poker chips. Now his poker balance is 12,000.
- He plays with this, has a good run, and ends up with 40,000 in his poker balance. Now he wants to withdraw.
- His winnings will be Final Balance - Deposits (not including the Bonus we gave him). i.e., 40,000 - 10,000 = 30,000. TDS = 30% of this, which is 9000. So, 40,000 - 9000 = 31,000 will be credited to his user balance.
Know more about our Tax policies here.