World Cup Winning Prize: Yesterday, on 29th June, Team India created history in West Indies. In the final match of T20 World Cup 2024 played at Kensington Oval ground in Barbados, Team India defeated South Africa by 7 runs and won the ICC title after 11 years and won the T20 World Cup after 17 years. There were not one but many heroes in Team India’s victory in batting where Virat Kohli, Axar Patel and Shivam Dubey contributed.
While in bowling, Hardik Pandya, Arshdeep Singh and Jaspreet Bumrah did the job. After winning the World Cup, Team India will get $2.45 million i.e. Rs 20.36 crores. Now the question that is coming to people’s mind is whether this prize money received after winning the World Cup will also be taxed. So let us tell you.
Tax will have to be paid on World Cup winning prize money
Team India made crores of Indians happy by winning the World Cup title. And at the same time, they also won prize money worth crores. Yesterday, the ICC had kept a prize money of Rs 93.51 crore for the T20 World Cup 2024. In which different amounts were given to the teams finishing the World Cup at different places.
The World Cup winning Indian team was given Rs 20.36 crore as prize money. How much money will the Indian team get out of this? If we talk about how much tax they will have to pay? Under Section 56(2) of the Income Tax Act, tax has to be paid on prize money. That means a good part of the prize money of Rs 93.51 crore of Team India will go as tax.
What are the rules regarding tax on prize money?
Talking about awards, if they are approved by the Indian government, then such awards are tax free. Under Section 10 (17A) of the Income Tax Act, these awards are exempted from tax. These include any National Award, Arjuna Award or such awards which are given by the Indian government to Olympic Games winners, Asian Games winners and Commonwealth Games winners.
They are tax free. Along with this, if you get a Nobel Prize award, then it is also tax free under Section 10 (17A) of the Income Tax Act. Let us tell you that the Board of Control for Cricket in India, i.e. BCCI, is demanding from the government to make the awards received from ICC tax free.
