The Taxing Triumph: D Gukesh’s World Chess Championship Victory Comes at a Cost

The crown of a world champion comes with a price, and for 18-year-old chess prodigy D Gukesh, that price is a hefty tax bill of approximately ₹4.67 crore. Gukesh recently made history by winning the World Chess Championship 2024 in Singapore, defeating China’s Ding Liren in a thrilling match.

Gukesh’s triumph not only earned him the title of the youngest-ever world champion, surpassing the legendary Gary Kasparov, but also a significant amount of prize money. Each game in the championship was worth $200,000, and Gukesh won three games, taking home a total of $600,000. In addition, the total prize money of $1.5 million will be divided between Gukesh and Liren, with Gukesh expected to pocket around ₹11.34 crore in total.

However, the joy of victory is tempered by the heavy tax burden that comes with such a windfall. In India, income above ₹15 lakh is taxed at 30%, with an additional surcharge of up to 37% for those earning more than ₹5 crore. This, combined with a 4% health and education levy, results in an effective tax rate of over 42%.

Despite the tax implications, Gukesh received a hero’s welcome upon his return to India. Fans gathered at the airport in Chennai to celebrate the young champion’s historic achievement, while state government officials, including Tamil Nadu Chief Minister MK Stalin, congratulated him on his success. The Chief Minister even announced a cash reward of ₹5 crore for Gukesh, further adding to his winnings.

As Gukesh navigates the complexities of his newfound fame and fortune, one thing is certain – the price of wearing the crown of a world champion is not just measured in victories, but also in the taxes that come with it.