Introduction
Indian chess player Gukesh D has made history by winning the World Chess Championship for a whopping prize money of Rs 11 crore. However, the after-tax amount that the Grandmaster will take home is Rs 4.67 crore. This blog post looks at the tax implications of that prize money, how Gukesh’s victory affects the Indian chess landscape and the wider impact of the game.
Understanding After-Tax Income
Gukesh’s win at the World Chess Championship brought him a whopping prize money of Rs 11 crore. However, like many high earners in India, he faces a huge tax burden on this amount. Here is a breakdown:
Tax deduction on prize money
In India, prize money is subject to income tax under the Income Tax Act, 1961. Winners of big prizes, such as those from competitive games or intellectual events, are taxed as “Income from other sources” and the rate can go up to 30. Percent depending on the prize money.
Tax calculation and deductions
With a tax rate of around 30%, after deductions, Gukesh’s Rs 11 crore prize money reduces to Rs 4.67 crore. The exact amount may vary depending on the surcharge, levy and other provisions applicable to income tax in India.
Impact of taxes on prizes
While the tax deduction significantly reduces the prize money, it is still a substantial sum that strengthens Gukesh’s financial future. The tax system, although high, contributes to the development and infrastructure of the nation.
Gukesh’s historic victory and its impact on Indian chess
Gukesh’s success has put India on the world chess map. His victory was not only due to the money but also the prestige of representing India at the highest level. Here is why his achievement is significant:
Boosting the popularity of chess in India
Gukesh’s victory is expected to generate new interest in chess across the country. With his youth and impressive achievements, he will undoubtedly inspire the next generation of chess players.
Growing chess infrastructure and funding
As the level of chess in India continues to grow, more corporate and government funding could flow into the game. This could help improve the infrastructure and facilities available to young players across the country.
Gukesh as a role model for aspiring players
His victory also serves as a powerful reminder of the dedication and perseverance required to succeed in the competitive world of chess. With greater recognition, Gukesh could become a global chess ambassador, inspiring millions of young minds.
Conclusion
Gukesh’s victory in the World Chess Championship, which earned him 11 Cr, has sparked debates about how taxes affect these huge earnings. Even after taxes, the money he took home, 4.67 Cr, is a staggering figure that speaks volumes about his talent and hard work.
This historic victory is more than just a financial event. It is a testament to the power of dedication, intelligence and the global appeal of chess. Gukesh is a living example of how chess in India is evolving and how players can make their mark on the world stage.
