The tax structure of local and overseas players for the Indian Premier League (IPL) fluctuates according to the regional status and specific Indian tax laws based on the overall income received in India.
The actual payout of the most expensive players of IPL 2025 will be different due to tax implications.
For instance, Rishabh Pant (INR 27 crore) and Shreyas Iyer (INR 26.75 crore) topped Mitchell Starc’s record of INR 23.75 crore in IPL 2024 with Kolkata Knight Riders (KKR). As a result, the duo of Indian batters became the costliest players in the entire IPL history so far, surpassing the 25-crore mark. But, many cricket fans would be shocked to know that their salary after tax would be reduced to a great extent.
It is understood that the tax deduction will be on a large scale for visiting players such as Jos Buttler (INR 15.75 crore), Jofra Archer (INR 12.50 crore), Trent Boult and Josh Hazlewood (with INR 12.50 crore each).
Also, Vaibhav Suryavanshi, the youngest debutant in IPL history who bagged the most expensive IPL contract of INR 1.10 crore at the age of 13, should mandatorily abide by the tax regulations.
Why do IPL Players Not Receive Full Amount when compared to their Acquired Price in the Auction?
Since the tax is deducted from the auction amount, it becomes clear that the Indian and overseas cricketers wouldn’t get the full amount.
Tax Deduction System for Indian and Overseas Players
In comparison to the Indian players who are subjected to a 10% TDS (Tax Deducted at Source), the foreign cricketers as non-residents of India are prone to a 20% TDS per year based on the Indian government rules.
Pant and Iyer with higher income are subjected to 30% TDS rather than 10%. This is because the Indian government follows a progressive taxation system.
Salary of Rishabh Pant, Shreyas Iyer and Jos Buttler Per IPL Season
Let’s scrutinize the below-listed details to understand the salaries received by the most expensive Indian players of the 18th edition— Rishabh Pant and Shreyas Iyer as well as the costliest foreign player of IPL 2025 — Jos Buttler after tax deductions:
1. Rishabh Pant (Lucknow Super Giants): INR 27 Crore
- Full Name: Rishabh Rajendra Pant
- Nation: India
- Role: Wicketkeeper-Batter
- Base Price: INR 2 crore
- Bidding Price: INR 27 crore
- Tax Deduction Percentage: 30%
- Amount Paid as Tax: INR 8.1 Crore (According to Indian Government Regulations)
- Final Amount Received After 30% Tax Deduction: INR 18.9 crore
2. Shreyas Iyer (Punjab Kings): INR 26.75 Crore
- Full Name: Shreyas Santosh Iyer
- Nation: India
- Role: Batter
- Base Price: INR 2 crore
- Bidding Price: INR 26.75 crore
- Tax Deduction Percentage: 30%
- Amount Paid as Tax: INR 8.025 Crore (According to Indian Government Regulations)
- Final Amount Received After 30% Tax Deduction: INR 18.725 Crore
3. Jos Buttler (Gujarat Titans): INR 15.75 Crore
- Full Name: Joseph Charles Buttler
- Nation: England
- Role: Wicketkeeper-Batter
- Base Price: INR 2 crore
- Bidding Price: INR 15.75 crore
- Tax Deduction Percentage: 20%
- Amount Paid as Tax: INR 3.15 Crore (According to Indian Government Regulations)
- Final Amount Received After 20% Tax Deduction: INR 12.60 Crore
IPL Players Salary Structure
According to the guidelines set by the IPL Governing Council (GC), the amount bid on each player during the mega auction is for three years till the next cycle. In other words, the overall funds spent by a franchise on a particular player reflect the yearly or per-IPL season salary.
Also, the franchises pay salaries on a per-season basis. For example, Rishabh Pant who was bought for INR 27 crore by LSG, earns INR 18.9 crore per season (after 30% TDS) if he participates in the contracted cycle of 2025-27. In such conditions, Pant would earn INR 56.7 crore during his three-year contract based on his availability.
Final Verdict:
Most importantly, players must agree with the triangular agreement by signing the deal with BCCI (Board of Control for Cricket in India) and the IPL franchise. Suppose, a franchise makes a payment to their players on time, then BCCI enters into the scene by making the payment and later debits the amount from the team’s central revenue fund.
Moreover, if players suffer an injury while playing for their national team before the commencement of the tournament, the BCCI’s insurance policy guarantees them to pay the full amount without any tax deductions. This is applicable only if a player fails to confirm his availability under unavoidable situations throughout the IPL season. However, such compensation isn’t available for overseas players.