EXPLAINED: How Much Tax Youngest World Chess Champion D Gukesh Is Paying?

In a feat that will be etched in the annals of Indian sporting history, D Gukesh, an 18-year-old chess prodigy, has been crowned the youngest-ever World Chess Champion. Gukesh achieved this remarkable milestone by defeating reigning champion Ding Liren of China in a nail-biting final at the FIDE World Chess Championship in Singapore. While the victory has catapulted him to global fame, the financial implications of his success have raised eyebrows. Gukesh now faces a whopping tax bill of ₹4.67 crore, exceeding MS Dhoni’s current IPL salary of ₹4 crore.

Gukesh's Road to Glory

Gukesh's journey to the world title is nothing short of inspiring. Facing stiff competition from Ding Liren, Gukesh showcased exceptional strategy, composure, and precision. The 14-game final culminated in a 7.5-6.5 triumph in Gukesh's favor, with his 58-move victory in the decisive match sealing the championship. The Chennai-based grandmaster has now surpassed the legendary Garry Kasparov’s record as the youngest World Chess Champion, a title Kasparov held for decades.

Gukesh’s total earnings from the championship amount to a staggering ₹11.34 crore, including winnings from individual match victories and a share of the total prize pool of ₹21 crore, as per FIDE regulations.

The Heavy Price of Success

Despite his historic achievement, Gukesh’s financial triumph is tempered by India’s stringent tax laws. As per Section 194B of the Income Tax Act, prize money earned from competitions is considered taxable income. Individuals earning over ₹5 crore face a 30% base tax rate, an additional surcharge of up to 37%, and a 4% health and education levy, leading to an effective tax rate exceeding 42%.

For Gukesh, this translates to a tax liability of approximately ₹4.67 crore, a figure that surpasses Chennai Super Kings (CSK) captain MS Dhoni’s IPL 2025 salary of ₹4 crore. While Dhoni’s leadership and cricketing prowess continue to inspire millions, Gukesh’s meteoric rise in chess has now drawn comparisons across sporting circles, underscoring the evolving landscape of Indian sports.

Gukesh's Perspective: Passion Over Money

In the wake of his monumental success, Gukesh remains unfazed by the financial burden. Speaking to reporters, he emphasized his love for the sport over monetary rewards. “Personally, money isn’t the reason I play chess,” Gukesh stated. “When I started this journey, my family and I made sacrifices driven purely by passion. This victory means more than any financial reward.”

Gukesh’s parents, who played a pivotal role in nurturing his talent, expressed pride in their son’s achievement. His father reflected on the early struggles of funding Gukesh’s training and international tournaments. “We had to make difficult decisions, but today, seeing him lift the World Chess Championship trophy makes every sacrifice worthwhile,” he said.

Tamil Nadu Honours Its Hero

Upon his return to Chennai, Gukesh received a hero’s welcome. Fans thronged the Chennai International Airport to celebrate the young champion’s arrival, while Tamil Nadu Chief Minister MK Stalin announced a cash reward of ₹5 crore for Gukesh’s unprecedented achievement. The recognition highlights the growing support for non-cricket sports in India and underscores the state’s commitment to fostering talent across disciplines.

The Bigger Picture: Gukesh's Impact on Indian Chess

Gukesh’s victory signals a new dawn for Indian chess, a sport long dominated by legends like Viswanathan Anand. His success has inspired a new generation of aspiring chess players, proving that age is no barrier to greatness. The title also brings attention to the need for better financial support and incentives for athletes in non-mainstream sports.

As India continues to diversify its sporting portfolio, Gukesh’s triumph serves as a reminder of the immense potential in Indian chess. With his unwavering determination, the young champion has not only brought glory to the nation but also placed Indian chess firmly on the global map.