Virat Kohli to pay heavy Income tax on his IPL salary
Why will Rs 8 crore be deducted from Kohli’s salary: Virat Kohli is an IPL star player. He has a massive influence on this tournament. Since he made his debut for Royal Challengers Bangalore (RCB), he has been the most crucial player for the team. That’s why RCB never released him and continued to hike his salary year by year. He was retained at Rs 21 crore for this year, but as per the recent updates, he will receive only Rs 13 crore out of it. So, Rs 8 crore will be cut from his salary. What might be the reason for it? And also know RCB Schedule in IPL.
Why will Kohli receive only Rs 13 crore?
Actually, as per the rules of the Income Tax Act, 1961, IPL income is considered as “income from business or profession”. Therefore, this income falls in the highest tax bracket. This means that since Kohli’s income is more than Rs 15 lakh, he will have to pay 30% tax on his Rs 21 crore salary. Accordingly, the tax comes to Rs 6.3 crore. Equally, if his income exceeds Rs 5 crore, he will also need to pay an extra 25% surcharge besides the tax.
Based on this, he will lose an extra Rs 1.575 crore from his paycheck. After this, he will also have to pay an additional Rs 31 lakh as a cess of 4% over the entire tax. Therefore, Rs 8.185 crore will be cut from Kohli’s salary and he will receive only Rs 12.815 crore (approximately Rs 13 crore). Kohli’s income from IPL
Kohli’s earnings from IPL
Virat Kohli began his career in IPL in 2008. He was paid only Rs 12 lakh at that time. The salary in 2011 was pegged at Rs 8.28 crore for three seasons. It was Rs 12 crore during the period 2014-2017; however, it jumped to Rs 17 crore from 2018 to 2021. Between 2022 and 2024, he earned Rs 15 crore, and the salary has now risen to Rs 21 crore.
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