By A Staff Reporter
The much-anticipated IPL 2025 Mega Auction is set to take place on November 24 and 25, featuring 574 cricketers vying for spots in the league. While players are bought for staggering amounts, their actual take-home earnings are far less due to taxes, match fees, and other deductions.
Each player earns additional match fees alongside their auction price. For every match played, a cricketer earns ₹4 lakh as a match fee. Any additional awards like "Man of the Match" also add to their earnings.
However, taxes significantly impact these earnings. For Indian players, a 10% Tax Deducted at Source (TDS) is applied initially. They are then required to pay the remaining 20% income tax to meet the 30% tax slab applicable to high-income earners.
Foreign players, on the other hand, face a 20% TDS on their IPL income. This amount is deducted at source and does not require further filing in India unless specified.
Additionally, players with annual income tax liabilities exceeding ₹50 lakh must pay a surcharge. This surcharge ranges from 10% to 25% of the income tax amount. Educational and health cess also apply, further reducing the net earnings.
For instance, a player bought for ₹10 crore who plays all matches in the season will see their gross income reduced significantly after taxes. The intricate tax structure means foreign and Indian players face different financial realities, with Indian cricketers managing higher post-TDS tax obligations.
The IPL remains lucrative, but understanding the deductions sheds light on the financial complexities cricketers face behind the glittering auction prices.