How Much Will Rishabh Pant Earn After Taxes From His Rs 27 Crore IPL Salary?
IPL Mega Auction 2024: Do you know how much will Rishabh Pant, the most expensive player in IPL history be charged as taxes? Will he receive his full salary if he sustains an injury during the tournament and what happens if a player does not...Read More
Rishabh Pant made history as the most expensive player in IPL after Lucknow Super Giants shelled out a record-breaking Rs 27 crore for the dynamic India wicketkeeper-batter at the tournament’s mega auction on Sunday.
Delhi Capitals used the Right To Match to buy back Pant at Rs 20.75 crore but LSG raised the bid to Rs 27 crore and the former decided against matching that amount.
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Pant beat all odds to make a successful comeback to international cricket after a life-threatening car accident in 2022. He is expected to lead his new team in IPL 2025, which will begin March 14.
But do you know how much Pant has to pay as tax from Rs 27 crore and what will be the net amount remaining with him? Also, if he gets injured during or before the tournament, how much loss might he incur?
What Will Be Rishabh Pant’s Net Income
According to back-of-the-envelope tax calculations, a tax of Rs 11.48 crore will be applicable on his professional income of Rs 27 crore.
A 30% tax will be levied on Pant’s professional income, which will amount to Rs 8.06 crore (Rs 8,06,00,000). The tax after surcharge will be Rs 11.04 crore (Rs 11,04,22,000). A 37% surcharge applies as his income exceeds Rs 5 crore. His total tax after cess would be Rs 11.48 crore (Rs 11,48,38,880) after deducting 4% health and education cess. Therefore, Pant’s in-hand salary will be roughly around Rs 15.52 crore.
His in-hand amount can increase if he avails deductions and adjusts expenses like manager’s fees, travel and accommodations, equipment, accounting and other expenses.
Rajarshi Dasgupta, the Executive Director-Tax of AQUILAW stated that under the new tax regime, out of the Rs 27 crore per season for Pant’s services with the team, the Indian government will claim Rs 10.53 crore in tax (30% income tax, 25% surcharge and 4% cess under the new tax regime) from his total contract value, which leaves Pant, with a net salary of Rs 16.47 crore per season from his IPL team.
While paying the money to the player, the franchisee will deduct a TDS of 10% which Rishabh Pant may get deduction at the time of filing income tax return, Dasgupta added.
What Will Happen If He Gets Injured
If Rishabh Pant sustains an injury during the IPL, he will receive his full payment. However, if an injury occurs before the tournament, preventing his participation, the franchise holds the right to replace him with another player. In the case of a pre-tournament injury, foreign players are not compensated. If an Indian player is injured while on assignment with Team India, rendering them unavailable for the IPL, they will receive full payment for the season, covered by the BCCI’s insurance policy.
What Happens If a Player Does Not Participate in a Single Match
Even if an Indian or foreign player is contracted for the entire tournament with an IPL franchise but does not play a single match, they are still entitled to their full contracted salary.
However, if a player withdraws from the tournament due to personal reasons, their payment will be prorated based on the number of matches played. Similarly, if a player sustains an injury during the tournament, the franchise is obligated to pay the full contracted amount.
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