In the 2-day IPL Mega Auction in Jeddah, Saudi Arabia, 10 franchises fetched Rs. 639.15 crore was spent. 182 players were sold in the auction, of which 62 are foreign players. Rishabh Pant became the most expensive player in history. He was bought by Lucknow Super Giants (LSG) for Rs 27 crore.
When players are auctioned, TDS is deducted from their auction amount. Here we are telling how much money players sold in IPL will get compared to auction money. How much money will go into the government treasury?
10% TDS on Indian players, 20% on foreigners The Indian government imposes a 10% tax on the salaries of Indian players. This tax is deducted by the IPL franchise as Tax Deducted at Source (TDS) before payment to the player. While deducting 20% tax on the salary of foreign players.
For example, if an Indian player's salary is Rs. 10 crore, then before paying the franchise player Rs. 1 crore will be deducted as tax. When the foreign player's salary is Rs 10 crore, the franchise deducts Rs 2 crore as tax. The TDS deducted is credited to the Government of India on behalf of the players.
The money received by Indian players from IPL will add to their total income The money Indian players receive from the IPL team is taxable under the Income Tax Act, 1961. This amount is treated as income from other sources. This income is added to their total income and tax is charged as per slab while filing income tax return. Then the TDS deducted is adjusted.
Different tax rules on money earned by foreign players in IPL Foreign players who are present in India for more than 182 days in a financial year are covered under the Indian Income Tax Act. In such cases, the money received from the IPL team is added to their total income and taxed as per the tax slab.
Foreign players who are not present in India for more than 182 days in a financial year are not liable to tax on their entire income as per Indian Income Tax Act. These cricketers are only liable to TDS under Section 194E of the Income Tax Act, 1961.
89.49 crore rupees will go to the government exchequer from the IPL auction The TDS deducted from the IPL team owners is deposited to the Government of India on behalf of the players. 10 franchisees have spent 639.15 crore rupees in this auction. In which 383.40 crore rupees have been spent on Indian players and 255.75 crore rupees on foreign players.
As per 10% TDS, the total TDS of Indian players comes to Rs 38.34 crore. As per 20% TDS of foreign players, it is Rs. 51.15 crores. That is, out of the amount given to the players in this auction, a total of Rs 89.49 crore will be deposited in the government treasury.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
