D Gukesh's Tax Liability More Than MS Dhoni's IPL Salary After Rs 11 Cr Win: Tax Slabs For FY 2024-25 New & Old Regime Explained

D Gukesh made history last week by becoming the youngest-ever World Champion in chess, beating Ding Liren of China in the 14-game match. 

 

The 18-year-old from Chennai became the 18th World Champion in the over century-long history of chess and the youngest after beating Garry Kasparov's record of winning the title at the age of 22 and heralding the arrival of a new king on the chess horizon.

 

The Indian chess prodigy won International Chess Federation's Rs 11.34 crore prize money. However, he now has a significant tax liability of Rs 4.67 crore, which is more than MS Dhoni's IPL salary for the upcoming season, which is touted to be Rs 4 crore.

 

India's tax rate for incomes over Rs 15 lakh is 30%, with additional surcharges for those over Rs 5 crore. Gukesh’s Rs 11.34 crore includes Rs 5.04 crore from three wins. The remaining was split from the total prize pool of Rs 21 crore as per FIDE regulations.

 

 

Up to Rs 3 lakh: NIL

Rs 3 lakh - Rs 7 lakh: 5 percent 

Rs 7 lakh - Rs 10 lakh: 10 percent 

Rs 10 lakh - Rs 12 lakh: 15 percent 

Rs 12 lakh - Rs 15 lakh: 20 percent 

Above Rs 15 lakh: 30 percent 

Up to Rs 2,50,000: NIL

Rs 2,50,001 - Rs 5,00,000: 5 percent 

Rs 5,00,001 to Rs 10,00,000: 20 percent 

Rs 10,00,001 and above: 30 percent 

10 percent of Income tax if total income is between Rs 50 lakh and below Rs 1 crore

15 percent of Income tax if total income is above Rs 1 crore and below Rs 2 crore

25 percent of Income tax if total income is above Rs 2 crore and below Rs 5 crore

37 percent of Income tax if total income is above Rs 5 crore    

The Rs 5 crore income with additional 37 surcharge is clubbed with 4 percent health and education levy that brings the effective tax rates @42 percent.