IPL 2024 Auction: How much money will Mitchell Starc, who has a CTC of around Rs 25 crore, get by selling him?

by

For IPL 2024, KKR bought Starc for Rs 24 crore 75 lakh. The public calculated every ball and every over. The experts in the meme market brought out various types of figures. But will they really get that much money? What effect will a rule named DTAA give?

The mini auction for IPL 2024 ended yesterday i.e. on 19th December. Australian fast bowler Mitchell Starc became the most expensive player in IPL history. KKR bought Starc for Rs 24 crore 75 lakh. Shahrukh Khan’s Kolkata Knight Riders will pay Starc more than Rs 4 lakh per ball. If KKR reaches the final, Mitchell Starc will get more than Rs 24 lakh for bowling one over, etc.

You might wonder why he is telling me all this. Just do it brother, because everything from news to social media is already there.

Guru, what has come is only half the information. Really, Mitchell is not going to get that much money. Yes, Kolkata Knight Riders will definitely have to pay Rs 4 lakh for each ball. What I mean to say is that multiplication and mathematics are not as simple as they appear.

Suppose if you earn Rs 1200 in a year, it is not as easy as earning Rs 100 per month. There is a thing called tax. Player, even if you are a foreigner, TDS and tax will be charged in India. Along with this, a rule named DTAA will also come out. After this, whatever money comes into Mitchell’s hands, there will definitely not be a single ball worth Rs 4 lakh for him.

 

Well, the matter of TDS and tax is absolutely simple. Just as an Indian has to pay TDS on his earnings, similarly a foreigner also has to pay TDS. Only its slab is different. Now we are not experts in this. That’s why we talked to a tax expert. Piyush Maheshwari is a chartered accountant by profession and also teaches children under the name of E-Professional Academy. According to Piyush, if the player was an Indian then 10 percent TDS should have been deducted earlier.

If we assume that 10% TDS of Rs 24.75 crore would have been deducted then Rs 22.27 crore would have come into our hands. Not only this, 30 percent income tax is also levied on the entire income. Here the 10 percent TDS charged would have been refunded, but 20 percent would still have to be paid. There is one more though. Meaning, tax is calculated after deducting savings etc. Still, a huge amount still goes into the government treasury.

Now he bowls in Australia while staying in India. Meaning in League India, the money is also from here, so the rules of India will also be applicable. Here it also means TDS, Surcharge and Cess for Michel Bhai in India. First of all, 20 percent TDS which is applicable for sports quota people. Meaning,

# Out of 24.75 crores, 4.95 crores are going to be cut directly.

# 37% surcharge will be applicable on Rs 4.95 crore. The income here is above Rs 5 crore. If it were less then the surcharge would be less.

# Means add 1.83 crore more to 4.95 crore.

# Total addition was 6.78 crores. Now 4 percent educational cess will also be levied on this amount, i.e. Rs 6.78 crore.

# Total amount becomes 7.05 crores.

To understand, roughly 28.49 percent tax is going to be imposed on Rs 24.75 crore. Michal Bhai will get Rs 17.7 crores in a cut. This is the rule of the Government of India. How much will Australia charge? Nothing because DTAA will be useful here. ‘Double Taxation Avoidance Agreements’, means tax will have to be paid at one place only. Almost all the countries of the world follow this treaty. It is believed that if an Indian lives in Australia, he will get the money as per the tax there.

Meaning Stark will get Rs 17.7 crores. However, the Rs 7.05 crores that were deducted can also come back. But that will depend on their total earnings, savings and taxes. Assume that that mathematics will be calculated in Australia on their earnings from every source. They will get only Rs 17.7 crore from India.

Now calculate how much money Mitchell will get for each ball.

 

Leave a Comment