Indian chess prodigy D. Gukesh's recent victory at the 2024 World Chess Championship has not only brought him international acclaim but also a substantial financial reward. However, a significant portion of his prize money is subject to taxation under India's current tax laws.
Tax Implications on Gukesh's Winnings
Gukesh's total earnings from the championship are approximately ₹11.45 crore. As per India's income tax regulations, this amount falls into the highest tax bracket. The tax liability includes:
Base Tax: 30% on income exceeding ₹15 lakh.
Surcharge: 37% on the base tax for incomes over ₹5 crore.
Health and Education Cess: 4% on the total tax.
These components cumulatively result in a tax liability of approximately ₹4.8 crore, equating to about 42% of his total prize money.
MediaFx.app's Perspective
At MediaFx.app, we believe that earnings from international sports victories should be exempt from taxation. Athletes like Gukesh bring immense pride to the nation, and their achievements on global platforms should be rewarded without the burden of heavy taxes.
Furthermore, India's taxation system often places a disproportionate burden on the common populace while favoring the super-rich. Implementing tax exemptions for international sports earnings would not only honor our athletes but also reflect a more equitable approach to taxation.
Conclusion
While D. Gukesh's triumph is a testament to his dedication and skill, the substantial tax on his prize money highlights the need for a reevaluation of tax policies concerning international sports earnings. Recognizing and rewarding the hard work of our athletes through tax exemptions would be a step toward fostering a more supportive environment for sports in India.
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