D. Gukesh, the Chess Champion may have to pay over Rs 4.5 Crore Tax after Winning Rs.11 Crore

Indian chess star D. Gukesh made history by becoming the youngest-ever World Chess Champion at the age of 18. He defeated China’s reigning champion, Ding Liren, in the 2024 World Chess Championship held in Singapore.

The whole country is celebrating his achievement. Emotional moments, like Gukesh hugging his father after the win, and videos of him sharing his dream to become the youngest champion, have gone viral. But along with the celebrations, some people are jokingly congratulating the Income Tax Department for a different reason!

How Much Did Gukesh Earn?

The total prize money for the championship was $2.5 million (around ₹20.75 crore). According to FIDE’s rules:

1. Each game a player wins earns them $200,000 (₹1.68 crore).
2. The remaining money is divided equally between the two finalists.

Here’s how the prize money was distributed:

• Gukesh’s Wins:
  Gukesh won 3 games (Games 3, 11, and 14), earning $600,000 (₹5.04 crore).
  From the remaining prize pool, he received an additional $750,000 (₹6.3 crore).
  In total, Gukesh earned $1.35 million (around ₹11.34 crore).
• Ding Liren’s Wins:
  Liren won 2 games (Games 1 and 2), earning $400,000 (₹3.36 crore).
  He also received $750,000 (₹6.3 crore) from the remaining pool.
  His total earnings were $1.15 million (around ₹9.66 crore).

Gukesh’s Net Worth After the Win

Before the tournament, Gukesh’s net worth was ₹8.26 crore. After this championship, his net worth has nearly tripled to ₹21 crore.

Taxes on Gukesh’s Prize Money

In India, high earners pay up to 30% income tax. Here’s how it applies to Gukesh:

• He may have to pay around ₹3 crore in taxes.
• With additional charges (like surcharges), his tax could go over ₹4.67 crore.

That’s why some people are jokingly congratulating the Income Tax Department for benefiting from his success! As one person humorously commented: “That’s called TDS: Tax Deducted by Sitharaman!”

Income Tax Rates