Grandmaster D Gukesh’s extraordinary accomplishment has introduced immense pleasure to the nation. Nevertheless, an essential query stays: how a lot of his prize cash will he retain after taxes?
New Delhi: India’s Grandmaster D Gukesh, captured consideration by clinching the 2024 FIDE World Championship title and securing a outstanding Rs 11.45 crore in prize cash. His excellent victory has introduced immense pleasure to the nation. Nevertheless, a important situation looms: how a lot of this prize will he retain after tax deductions?
Let’s analyze the scenario. As per Indian tax laws, Part 10(17A) of the Earnings Tax Act, 1961, gives tax exemptions for awards or rewards—whether or not in money or variety—if they’re offered by the Central Authorities, a State Authorities, or a physique acknowledged by the Central Authorities. Sadly for Gukesh, his prize was awarded by the Worldwide Chess Federation (FIDE), which doesn’t qualify below this provision. Because of this, he gained’t be eligible for this exemption.
So, what does this suggest for his earnings? In line with CA (Dr.) Suresh Surana, prize cash from competitions is taxed at a hard and fast price of 30%, no matter every other revenue he could earn. For Gukesh, this tax extends past the bottom price. Underneath India’s revised tax system, a 25% surcharge and a 4% Well being and Schooling Cess push his whole tax price to 39%. Consequently, his tax legal responsibility can be round Rs 4.46 crore.
The scenario may turn into even costlier below the earlier tax regime, the place the best surcharge is 37%, rising the efficient tax price to 42.744%. This may lead to even larger taxes on his hard-earned prize cash.
Regardless of the numerous deductions, Gukesh stays humble. In interviews, the 18-year-old has modestly dismissed his “multi-millionaire” label, stating that the chessboard remains to be his “coolest toy.” His journey serves as a reminder that even with the complexities of tax legal guidelines, ardour and perseverance are the true rewards of success.
