IPL 2025 mega auction: Indian cricket team player Rishabh Pant has created history by purchasing the most expensive in IPL history. He was bought by Lucknow Super Giants for Rs 27 crore in the mega auction.
Australian fast bowler Mitchell Starc received a hefty amount during the IPL 2025 auction in Jeddah, Saudi Arabia. Stark was bought by Delhi Capitals (DC) for Rs 11.75 crore. How much tax does the players have to pay on their earnings in IPL?
Indian players get 10% of TDS by deducting IPL and foreign players get 20% TDS. Players will have to sign a contract with both BCCI and franchise before receiving compensation.
If a franchise does not compensate, the BCCI will give compensation and deduct that amount from the central income of the franchise. According to a Cricket Association, the IPL franchise pays a certain amount to Indian players, which is considered a professional income.
The income received from the IPL is added to their total income of the year and tax is levied according to the slab. Players who have more amounts, such as Rishabh Pant and Shreyas Iyer, will have to pay 30% tax with overload and cess. Under Section 115 BBA of the Income Tax Act, 1961, especially rules apply to foreign players who are not Indian citizens and are not residents of India.
Under these rules, if he participates in any sport in India. It has been announced that if a writer writes articles related to sports in Indian newspapers, magazines or journals, his earnings will be imposed 20% tax. If you earn income in India then 20% TDS will be applicable. This means that they do not need to register for PAN (Permanent Account Number) in India.
Lucknow bought Rishabh Pant for a total of Rs 27 crore, but this amount is for three seasons for 2025, 2026 and 2027. Therefore, you will not get this amount at once. Along with this, the Income Tax Department will deduct Rs 8.1 crore from the total contract amount of Pant. Pant will get a net salary of Rs 18.9 crore for a three -year contract amount from the IPL team.
