INDIA
INDIA His remarkable achievement has filled the country with pride. However, a pressing question arises: how much of that prize money will he actually keep after taxes? Varnika Srivastava Updated : Dec 20, 2024, 08:12 PM IST India's young chess sensation, D. Gukesh, recently made headlines by winning the 2024 FIDE World Championship and taking home an astonishing ₹11.45 crore in prize money. His remarkable achievement has filled the country with pride. However, a pressing question arises: how much of that prize money will he actually keep after taxes? Let’s break it down. According to Indian tax laws, Section 10(17A) of the Income Tax Act, 1961, provides tax exemptions on awards or rewards—whether in cash or kind—if they are granted by the Central Government, a State Government, or an organization recognized by the Central Government. Unfortunately for Gukesh, the prize money he received was awarded by the International Chess Federation (FIDE), which does not fall under this category. This means he won't benefit from this exemption. So, what does this mean for his winnings? As per CA (Dr.) Suresh Surana, income from prizes or games is taxed at a flat rate of 30%, regardless of any other income he may have. For Gukesh, this tax isn’t limited to the base rate. Under India’s new tax regime, a surcharge of 25% and a 4% Health and Education Cess raise his effective tax rate to 39%. This results in a tax bill of approximately ₹4.46 crore. Things could get even more expensive under the old tax regime, where the maximum surcharge is higher (37%), pushing the effective rate to 42.744%. This would mean even greater taxes on his hard-earned winnings. Despite the significant deductions, Gukesh remains humble. In interviews, the 18-year-old has modestly dismissed his "multi-millionaire" label, stating that the chessboard is still his “coolest toy.” His journey serves as a reminder that even with the complexities of tax laws, passion and perseverance are the true rewards of success. None
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