How D Gukesh will find yourself paying extra taxes than MS Dhoni’s IPL wage after World Championship triumph

D Gukesh turned a millionaire on the age of 18 after being topped the
youngest world champion within the historical past of chess final week. Gukesh achieved the unbelievable feat together with his 7.5-6.5 victory over Ding Liren within the 2024 FIDE World Championship in Singapore, sealing the title together with his 58-move victory over the Chinese language Grandmaster on Thursday. Having gained US$ 200,000 for every of his three victories within the ‘Better of 14 Video games’ sequence to resolve the champion, and the remainder of the prize cash getting equally break up between the 2 gamers,
Gukesh ended up pocketing a whopping US$1.35 million, or INR 11.45 crore.

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Gukesh, nonetheless, gained’t take whom the whole quantity, and must shell out a sizeable chunk of his prize cash as taxes.

How a lot tax will Gukesh should pay from his prize cash?

The teenager chess prodigy, who obtained a hero’s welcome on the Chennai Worldwide Airport on Monday following his emotional triumph within the World Championship in Singapore, must pay 39 to 42 per cent of his prize cash as tax, as per Part 194B, Rule 26 of the Revenue Tax Act.

Prize cash gained in occasions such because the World Championship in addition to winnings by means of different means corresponding to lotteries is taken into account a taxable revenue. People incomes greater than Rs 15 lakh yearly are taxed at 30 per cent, whereas these incomes over Rs 5 crore should pay a further prices, and are successfully taxed at over 42 per cent.

Gukesh thus may need to pay a tax of roughly Rs 4.67 crore – which is increased than former India and Chennai Tremendous Kings captain MS Dhoni’s IPL wage. The 2011 ICC World Cup-winning captain had been retained by CSK as an ‘Uncapped Participant’ forward of this 12 months’s mega public sale in Jeddah.

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Gukesh, nonetheless, might get a marginal reduction underneath the brand new tax regime, through which he may find yourself paying a 39 per cent tax as an alternative of 42 per cent.

What can even make up for the tax deduction is the award of Rs 5 crore that Tamil Nadu Chief Minister MK Stalin has introduced for Gukesh following his unbelievable feat in Singapore. Though this award gained’t qualify for a tax exemption both, it definitely will assist Gukesh recuperate a significant portion of his earnings that can be going to the Central Authorities.