The Heavy Price of Success: Gukesh’s Rs.11 Crore Windfall Slashed by Rs.4.67 Crore in Taxes! Check All the Details of Tax Burden on Athletes Below!

India’s chess prodigy, Gukesh, recently made headlines by winning a staggering ₹11 crore in the World Championships. However, his joy was short-lived, as he soon discovered that a whopping ₹4.67 crore of his winnings would be deducted as taxes. This means that Gukesh will be left with only approximately 57% of his reward. Check all the details about on Tax Burden on Athletes below.

In this blog post, we will explore the tax burden on athletes, the implications of this tax system, and possible solutions to support our champions. Before proceeding further, take a look at: RPSC Assistant Professor Recruitment 2025: Apply Online for 575 Posts! Check All The Details and Apply Here!

The Tax Burden on Athletes

Gukesh’s story is not an isolated one. Athletes worldwide face similar tax burdens on their winnings. A recent study revealed that:

• In countries like the U.S. and U.K., 40% to 50% of sports winnings are taxed, depending on state and federal rates.
• In India, the TDS rate on prizes and winnings is 30%, further adding surcharge and cess, making the effective tax rate close to 42.74% for high earners.
• Countries like Russia and the UAE offer tax exemptions on sports rewards, enabling athletes to retain 100% of their earnings.

Implications of the Tax Burden on Athletes

The tax system has significant implications for athletes like Gukesh. Here are a few:

• Reduced earnings: The tax burden reduces the athlete’s earnings, making it challenging for them to invest in their future, support their families, and give back to their communities.
• Inequitable treatment: The tax system treats athletes differently than other professionals. For instance, entrepreneurs and business leaders are often incentivized with tax breaks and exemptions.
• Impact on sports development: The tax burden can discourage athletes from competing at the international level, ultimately impacting the development of sports in the country.

Do not miss out on reading: The Unbelievable Sacrifice of Gukesh’s Father! A Journey to World Chess Championship! Check Their Unbeliever Story Here!

Tax Burden on Athletes Possible Solutions

To support our champions and promote sports development, we need to rethink our tax system. Here are a few possible solutions:

• Tax exemptions: Offering tax exemptions on sports rewards can help athletes retain their earnings and invest in their future.
• Reduced tax rates: Implementing reduced tax rates for athletes can help reduce the tax burden and promote sports development.
• Incentivizing sports: Incentivizing sports by offering tax breaks and exemptions can help promote sports development and encourage athletes to compete at the international level.

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Conclusion

Gukesh’s story highlights the need for a rethink of our tax system. The tax burden on athletes is a significant issue that needs to be addressed. By offering tax exemptions, reducing tax rates, and incentivizing sports, we can promote sports development and support our champions. It’s time for us to rethink our tax system and give our athletes the support they deserve.

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