Goverment Tax policy
1. Under Section 194B of the Income Tax Act, 30% tax will be deducted at source (TDS) on winning of Rs. 10,000/- or more in a tournament or ring games at any particular month. In these cases, you will be required to furnish your Permanent Account Number (PAN) issued by the Income tax authorities, if you have not already associated your PAN with the poker account. Pokermagnet.com will provide a TDS certificate for the tax exemption purpose at the end of each quarter. However, we neither advise you nor shall in any manner be responsible for your individual tax matters.
2. The winner will subsequently receive the winning amount after income tax deduction in the pokermagnet user account. The taxable income in any case shall be more than Rs 10,000. If a user wins less than Rs 10,000 then income tax will not be deducted and winner will receive total winning amount without any deduction.
3. We reserve the right to verify your PAN card for verification purpose during the withdrawal of funds/winning. We have the rights to cancel your winning amount if the verification is not complete or found inconsistent.
4. For tournament winnings: The 30% tax will be deducted at the time of winning only and the rest of the amount will be kept separately under tournament earnings section. The player can either cash out these winnings or convert them into normal game chips by calling or mailing at our support center.
Please note: A Player will not be able to buy tickets of tournaments from their tournament win amount, it can only be done from the normal cash game account.