Indian chess prodigy D Gukesh recently won International Chess Federation's Rs 11.34 crore prize money. However, he now has a significant tax liability.
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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.
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