IPL 2025: Foreign players bought for crores, what tax will have to be paid?

10 franchises spent Rs 639.15 crore in IPL mega auction. The auction was held in Jeddah, Saudi Arabia. 182 players were sold in this auction, out of which 62 are foreign players. In this auction, Rishabh Pant became the most expensive player in history by being sold at the highest bid. Let us tell you that he was bought by Lucknow Super Joints for Rs 27 crore. In such a situation, the question is whether the foreign players of IPL will also have to pay tax to the Indian government? Let us know the answers to all these questions today.

Will foreign players also have to pay tax on their earnings from IPL?

IPL is the world's largest and popular T20 cricket league. Many great cricketers from all over the world participate in this league. These players are bought for crores of rupees, but do these foreign players also have to pay tax on their income in India? Actually, the Indian government imposes 10 percent tax on the salaries of Indian players. This tax is deducted as Tax Deducted at Source (TDS) by the IPL franchise before payment to the player.

At the same time, 20 percent tax is deducted on the salary of foreign players. For example, if a player is bought for Rs 10 crore, the franchise deducts Rs 1 crore in the tax room before paying the money to the player. On the other hand, if a foreign player invests Rs. 10 crore, then before making the franchise payment of Rs. Rs 2 crores were deducted as tax. This TDS deducted is deposited on behalf of the players to the Government of India.

What are the rules for foreign players?

It is noteworthy that foreign players who are present in India for more than 182 days in a financial year come under the Indian Income Tax Act. In such cases, the money received from IPL teams is added to their total income and taxed as per the tax slab. Foreign players who are not present in India for more than 182 days in a financial year are not taxed on their entire income as per the Indian Income Tax Act. These cricketers are only liable for TDS under Section 194E of the Income Tax Act, 1961.