Ever since the IPL auction ended, there are only two names on everyone’s lips. The one who got the highest amount in IPL history was Rishabh Pant. The second name is the one who was selected in the team as the youngest player in IPL history. Where Rishabh Pant got Rs 27 crore. On the other hand, Vaibhav Suryavanshi was selected at a price 4 times more than his base price of Rs 1 crore 10 lakh. Rajasthan Royals included this player in their team.
Well, along with the auction price money of these players, there is also discussion about how much tax will be levied on such expensive players. Tax is not so complicated regarding the auction money received by Rishabh Pant, Shreyas Iyer, Venkatesh Iyer, Arshdeep Singh. By looking at their income and age, it can be clearly estimated how much amount they will have to pay as tax.
When we look at 13-14 year old Vaibhav Suryavanshi, the matter gets a bit stuck here. Besides, income tax rules also change a bit. There is a reason for this also. Even though Vaibhav Suryavanshi will face the biggest fast bowlers of the world. Who will be much older than him in age and experience. But he himself is in the category of minor. This is why it is very important to discuss the tax to be imposed on Vaibhav Suryavanshi. Let us try to understand this…
How will Vaibhav Suryavanshi be taxed?
In India, tax on the income of a minor is regulated by the Income Tax Act and is based on whether the income is earned or unearned. In the media report, Tax Buddy founder Sujit Bangar says that 13 year old cricketer Vaibhav Suryavanshi from Bihar has recently got an IPL contract worth Rs 1.10 crore. Which comes under specific tax rules.
Vaibhav Suryavanshi Coach
What will be the taxation breakup?
Earned Income: This type of income includes income generated from personal effort, skill or talent, such as income from sports, acting etc. Talking about taxation on earned income, income accruing to a minor, such as Vaibhav’s IPL contract, is taxed in the name of the minor instead of adding it to the income of the parents under Section 64(1A) of the Income Tax Act. is imposed. This earning is under personal income tax slab. Since she exceeds the basic exemption limit, Vaibhav will have to file income tax returns. The same tax will be imposed on their income as will be imposed on Rishabh Pant and Shreyas Iyer.
Unearned Income: This includes income from passive sources such as interest, savings, or investments made by parents or guardians in the name of the minor. Under taxation on unearned income, interest or dividend income is usually added to the parents’ income. Under Section 10(32), parents can claim annual exemption of up to Rs 1,500 per child. However, if the total income of a minor, including unearned income, is more than that of his parents, then the minor’s unearned income is taxed.
13 year old Vaibhav Suryavanshi will play in IPL 2025 (Photo- INSTAGRAM)
How to file income tax return
ITR for Earned Income: Minors earning above the exemption limit will have to file an ITR, with parents or guardians as the ‘representative assessee’.
ITR for Unearned Income: Such income is included in the ITR of the parents under clubbing provisions, unless exempted as per rules.
So how much will be the tax on wealth?
After knowing all these rules, let us now try to understand how much tax Vaibhav Suryavanshi will have to pay. Vaibhav has been bought in IPL for Rs 1.10 crore. In such a situation, a slab of 30 percent will be applicable. In such a situation, Vaibhav will have to pay Rs 33 lakh as tax and Vaibhav’s actual earning will be Rs 77 lakh.