The Indian Premier League i.e. IPL is one of the most expensive and popular cricket leagues in the world. Every year, crores of rupees bid on domestic and foreign players. But have you ever wondered if the cricketers get the full amount from the IPL? Or do they have to pay tax on this earning? Let us tell you the answer to this question whether the cricketers do not really pay tax on IPL money.

How does tax cut?

In India, it is mandatory to pay income tax on every kind of income and IPL earnings are also not different from this. Whether the player is Indian or foreigners, they have to pay tax on their earnings. In the IPL, the amount received by the players from the franchise is considered as ‘professional income’. This amount is added to their annual income and then tax is deducted according to the tax slab applied to it.

Tax rules for Indian players

Indian players have to pay tax under the Income Tax Act, 1961 on IPL earnings. When the players are auctioned for the IPL, their auction is cut from the amount as TDS. The Government of India imposes 10 percent tax on the salary of Indian players, this tax is deducted as TDS before paying the IPL franchise player. At the same time, 20 percent tax is deducted on the salary of foreign players.

How does tax cut?

For example, if a player’s salary is Rs 10 crore, then the franchise will deduct Rs 1 crore as a tax before paying the player. While there is a foreign player, then 2 crores. The cut TDS is deposited with the players with the players.

TDS rule

In the IPL, the franchisees deduct 10% tax deduction at source (TDS) before paying the players. Some franchise makes half the payment before the season starts, after the rest of the season is over. The BCCI ensures that the players get complete payment.

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