IPL Players Earn Crores in Auction but Pay Huge Taxes – The Numbers Will Shock You

IPL 2025 Mega Auction

Indian cricketer Rishabh Pant has created history by becoming the most expensive player in IPL history. In the mega auction, Lucknow Super Giants acquired him for a record-breaking ₹27 crore.

Similarly, Australian fast bowler Mitchell Starc secured a massive deal during the IPL 2025 auction held in Jeddah, Saudi Arabia. Delhi Capitals (DC) bought him for ₹11.75 crore. But how much tax do IPL players have to pay on their earnings? The numbers might surprise you!

Tax Deductions on IPL Earnings

IPL players do not receive the full amount they are bought for. Indian players have 10% Tax Deducted at Source (TDS), while foreign players have 20% TDS deducted from their payments. Before receiving their earnings, players must sign a contract with both the BCCI and the franchise.

If a franchise fails to pay a player, BCCI will cover the payment and deduct the amount from the franchise’s central revenue. According to a Chartered Accountant (CA), IPL franchises pay Indian players a fixed amount, which is considered business income and is taxed accordingly.

Also Read: IPL 2025: Siraj Gets Emotional After Leaving RCB for Gujarat Titans – Here’s What He Said About Kohli

How is IPL Income Taxed?

The earnings from IPL are added to a player’s annual income and taxed based on their applicable income tax slab. Players earning high amounts, such as Rishabh Pant and Shreyas Iyer, are liable to pay 30% tax, including surcharge and cess.

Under Section 115BBA of the Income Tax Act, 1961, foreign players who are not Indian citizens or residents are subject to special tax regulations.

According to these regulations:

If a foreign player participates in any game in India, endorses brands, or writes sports-related articles for Indian newspapers, magazines, or journals, they must pay a 20% tax on such earnings.
If a foreign player earns income in India, 20% TDS is deducted from their payments.
They are not required to register for a Permanent Account Number (PAN) in India.

How Much Will Rishabh Pant Actually Earn?

Although Lucknow Super Giants bought Rishabh Pant for ₹27 crore, this amount is spread over three seasons (2025, 2026, and 2027). Therefore, he will not receive the full amount at once.

Additionally, the Income Tax Department will deduct ₹8.1 crore as tax from his total contract amount. After deductions, Pant will receive a net salary of ₹18.9 crore from the IPL team over three years.