13-year-old Vaibhav Suryavanshi to play in IPL 2025
Since the IPL auction ended, there are only two names on everyone’s lips. The one who got the most in the history of the IPL was Rishabh Pant. The middle name is the one who was selected in the team as the youngest player in the history of the IPL. Where Rishabh Pant got 27 crores. On the other hand, Vaibhav Suryavanshi was selected at a price 4 times 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 applied to such expensive players. Taxes are not that complicated regarding the auction money received by Rishabh Pant, Shreyas Iyer, Venkatesh Iyer, Arshdeep Singh. By looking at their income and age, you can clearly estimate how much they will have to pay in taxes.
When we look at Vaibhav Suryavanshi, aged 13-14, the matter gets a bit stagnant here. Additionally, income tax rules also change a bit. There is also a reason for this. Although Vaibhav Suryavanshi will face the fastest bowlers in the world. Who will be much older than him in age and experience. But he himself is in the minor category. That is why it is very important to discuss the tax that will be imposed on Vaibhav Suryavanshi. Let’s try to understand this…
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How will Vaibhav Suryavanshi be taxed?
In India, tax on a minor’s income 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 recently got an IPL contract worth Rs 1.10 crore. Which is governed by specific tax rules.
Coach Vaibhav Suryavanshi
What will be the fiscal break?
Earned income: This type of income includes income generated by personal effort, skill, or talent, such as income from sports, acting, etc. Talking about tax on earned income, income accruing to a minor, like Vaibhav’s IPL contract, is taxed in the name of the minor instead of being added to the parents’ income under Section 64 (1A) of the Act of Income Tax. tax. This gain is included in the personal income tax slab. Since he exceeds the basic exemption limit, Vaibhav will have to file income tax returns. The same tax that will be imposed on Rishabh Pant and Shreyas Iyer will be imposed on their income.
Unearned Income: This includes income from passive sources such as interest, savings or investments made by parents or guardians on behalf of the minor. In unearned income taxation, interest or dividend income is typically added to the parent’s income. Under Article 10(32), parents can claim an annual exemption of up to Rs 1,500 per child. However, if a minor’s total income, including unearned income, is greater than that of his or her parents, then the minor’s unearned income is subject to tax.
Vaibhav Suryavanshi, 13, will play in IPL 2025 (Photo- INSTAGRAM)
How to file your income tax return
ITR for earned income: Minors earning above the exemption limit will be required to file an ITR, with parents or guardians as “representative assessors”.
ITR for unearned income: Such income is included in the parents’ ITR under the nightclub provisions, unless exempted under the rules.
So how much will the wealth tax be?
After knowing all these rules, let’s try to understand how much tax Vaibhav Suryavanshi will have to pay. Vaibhav was bought in IPL for Rs 1.10 crore. In such a situation a slab of 30 per cent will be applicable. In such a situation, Vaibhav will have to pay Rs 33 lakh as tax and Vaibhav’s actual profit will be Rs 77 lakh.
