New Delhi: The Indian Premier League (IPL) 2022 mega auction is underway in Bengaluru since Saturday. In the auction, 10 team owners are showering money to buy their favourite players.
On the day first of the auction, Ishan Kishan emerged victorious to get sold at the highest. Mumbai Indians paid Rs 15.25 crore to Kishan. Deepak Chahar was bought by Chennai Super Kings for Rs 14 crore.
Shreyas Iyer was sold to Kolkata Knight Riders for INR 12.25 crore. Shardul Thakur went to Delhi Capitals for Rs 10.75 crore.
Royal Challengers Bangalore bought Harshal Patel for Rs 10.75 crore.
End of Day 1⃣ at the #TATAIPLAuction saw players going for some huge amounts ??
Day 2⃣ promises to be yet another exciting one ??
Join us tomorrow for an action packed day ?@TataCompanies pic.twitter.com/DyV8lIHssc
— IndianPremierLeague (@IPL) February 12, 2022
The above-mentioned bidding amount for players can surprise any common man. However, players do not get the same amount they are purchased at. Every player has to pay tax before they take the amount home.
Tax for Indian players
As per the rule of Income Tax, the team deducts the TDS before handing over the money to players. Indian players are charged 10% TDS of the total bid amount. After this, players have to file an ITR. Followed by the TDS, players have to pay tax on the basis of net income.
Tax rule for foreign players
The government charges TDS on every player whether he is from India or abroad. The only difference between Indian and foreign players is that foreign players have to pay 20% TDS on the amount. After the deduction of TDS, they take the amount to their home country.
Notably, the exact amount that a player takes home cannot be estimated. Every company signs different types of contracts with players. Players get the amount as per the contract.
