The Union Budget changes significantly impacted 3 Indian cricketers through higher taxes and GST. Post-retirement earnings were affected, business ventures faced losses, and tax hikes reduced overall income. Additionally, the pandemic’s disruption of cricket events further hurt financial gains, with challenges in endorsements and other investments.
3. Sachin Tendulkar and the Impact of the 2012-13 Budget
The 2012-13 Union Budget, with its increased income tax rates and revised wealth tax regulations, impacted Sachin Tendulkar’s finances post-retirement. At the time, Tendulkar, India’s wealthiest cricketer with a net worth of $160 million, saw reduced income from brand endorsements and business investments due to the higher tax slabs for individuals earning over Rs 1 crore. The new wealth tax also hit his expensive properties and luxury possessions. Though an income tax tribunal in 2011 had allowed him to claim deductions on advertisement income by recognizing him as an “actor” under Section 80RR of the Income Tax Act, the stricter tax laws in the subsequent budget decreased his profits from various ventures.
2. How the 2016-17 Budget Affected Mahendra Singh Dhoni
The 2016-17 Union Budget introduced the Goods and Services Tax (GST), which significantly impacted MS Dhoni’s business ventures. With GST rates ranging from 18-28% on premium sports academies and higher luxury tax rates, Dhoni’s investments in real estate and fitness suffered financial setbacks. The new tax structure led to increased business costs and reduced profits.
Despite these challenges, Dhoni continued to be one of India’s highest taxpayers, paying Rs 30 crore as advance tax in 2020-21, Rs 12.17 crore in 2017-18, and Rs 10.93 crore in 2016-17. In 2024, he filed a criminal case against his former business partners, Mihir Diwakar and Soumya Biswas, accusing them of cheating him out of over Rs 15 crore through the establishment of unauthorized cricket academies.
1. Virat Kohli and the Effects of the 2020-21 Budget
Veteran Indian batsman Virat Kohli faced significant financial challenges due to the Union Budget 2020-21. The budget increased the tax surcharge on individuals earning over Rs 2 crore annually, which impacted top earners like Kohli. Income above Rs 5 crore was taxed at the highest rate of 42.7%, leading to substantial losses in Kohli’s earnings from match fees, IPL contracts, and endorsements.
The financial strain intensified as the COVID-19 pandemic disrupted cricket, causing delays and cancellations of tournaments, which in turn reduced BCCI’s income. Ashok Malhotra, president of the Indian Cricketers Association, suggested salary cuts as a possible solution. Despite these hurdles, Kohli remained India’s highest taxpayer, paying Rs 66 crore in taxes for FY24. His net worth is bolstered by endorsement deals with MRF, Puma, and HSBC India, but his fashion brand WROGN experienced a 29% revenue decline in 2024.