IPL is considered to be the most attractive T20 cricket league in the world, in which players get a very expensive salary package. Different franchise teams of IPL leave no stone unturned in buying top players. In the recently held IPL auction, Rishabh Pant emerged as the most expensive player, who signed a contract with Lucknow Super Giants for a record fee of Rs 27 crore. By doing this, he has become the most expensive player in IPL history. Let us tell you how cricketers who get contracts worth crores in IPL will have to pay tax.

How will income tax be levied on earning crores

Income tax rules on the earnings of Indian and foreign players playing in the IPL vary, particularly according to their residential status and Indian tax laws applicable to income earned in India.

Residential status

Income tax is deducted on the earnings of Indian players from India and abroad under Indian law. But, foreign players playing in IPL are classified as non-residents for taxation. TDS is deducted on the earnings of cricketers playing in IPL, which is 10% for Indian players and 20% for foreign players. These players get the contract amount only after deducting TDS.

Players playing IPL have to first sign a triangular agreement with both BCCI and the franchise to receive the contract amount. If a franchise team fails to make the payment, BCCI will take steps to make the payment and deduct the appropriate amount from the franchise’s central revenue fund.

What do experts say

According to a Business Today report, chartered accountant Suresh Surana said that the amount paid by IPL franchise teams to players is considered as professional income. In such a situation, the earnings from IPL are added to their total income in a year and tax is deducted accordingly based on income tax slab rates.

What are the rules for foreign players

Non-Resident Indian (NRI) Sportspersons and Foreign Athletes Tax is deducted from foreign players under specific provisions of section 115BBA of the Income Tax Act, 1961. As per this section, a non-resident sportsperson (including athletes) who is not a citizen of India and a non-resident participates in any sport or game in India is subject to special taxation.

In addition, foreign sportspersons who participate in any sport, advertisement, write articles related to sports in newspapers, magazines or journals in India, are taxed at a flat rate of 20% on the income they earn. Also, when these sportspersons receive their income in India, 20% TDS (tax deduction at source) is applicable.

However, foreign players can also avail of the double taxation benefit if their country has such an agreement with India. Because, in such cases, they may not be subject to additional tax in their home country as well. In contrast, Indian IPL players are taxed as per their respective income tax slabs, with a normal tax rate of 30% on their earnings.

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Team India is part of Group A for the World Cup. Where they will face Ireland, Pakistan, America and Canada. Team India will play its first match against Ireland on June 05. At the same time, their match against Pakistan is to be played on June 09. At the same time, the match will be played against America on June 12 and against Canada on June 15. Team India is going to play a T20 match for the first time against America and Canada. This match is also special because some Indian players are also present in both these teams, who will play against Team India. In such a situation, let us know about those players.

These players will play against India

There are four players in the US team against Team India who have a special connection with India. Milind Kumar is in this list. Milind Kumar has played FC cricket for Delhi and Sikkim. He has also played for Delhi and RCB in the IPL and will play against India for the USA in the T20 World Cup 2024. Apart from Milind Kumar, Harmeet Singh is also included in this squad. Harmeet Singh won the U19 World Cup for India in 2012. He played for Mumbai and Tripura in domestic cricket, but now plays for the United States and will play against India in the T20 World Cup 2024.

Also Read: Air India increased the salary of employees by Rs 15000, announced an annual bonus of Rs 180000

There is also an Indian in the Canadian team

Apart from these two players, the US team also has Monank Patel and Saurabh Netravalkar. Both these players have also spent a lot of time playing cricket in India. Monank Patel has played for Gujarat at the U16 and U18 level but moved to the USA permanently in 2016. He is the captain of the USA in the T20 World Cup 2024 and will play against India. At the same time, Saurabh Netravalkar played for India in the 2010 U19 World Cup and played for Mumbai in the Ranji Trophy.

He will now play for the USA against India in the T20 World Cup. On the other hand, there is only one player in the Canadian team who has played a lot of cricket in India. This player is Pargat Singh, he made his debut in first class cricket in the Ranji Trophy for Punjab in 2015-16. But now he will play for Canada against India in the T20 World Cup.

The post T20 World Cup: These 5 Indian players will play against Team India in the T20 World Cup first appeared on Rightsofemployees.com.