Chaitra Seetharam
Mustafizur Rahman, a fast bowler from Bangladesh joined to play in the IPL team for the Kolkata Knight Riders (KKR). But recently BCCI has formally directed Kolkata Knight Riders (KKR) to release him from their IPL 2026 squad. This was due to "recent developments all across," though they did not provide a precise official reason. BCCI secretary also confirmed that KKR will be allowed to select a replacement player under IPL regulations if required.
Lets check what he would have earned if not released by KKR?
Mustafizur Rahman's record-breaking IPL contract with Kolkata Knight Riders, worth ₹9.20 crore, comes with significant tax implications. As an overseas player, his earnings will have subject to a 20% flat tax deduction in India, followed by further obligations under the India-Bangladesh tax treaty and Bangladeshi domestic law. Consequently, his actual take-home pay will have substantially less than the headline auction figure.
Contract amount
The Kolkata Knight Riders (KKR) secured Mustafizur Rahman for ₹9.20 crore in the IPL 2026 auction. This contract value, a record for a Bangladeshi player in the IPL, represents the total financial commitment KKR is obligated to fulfill, contingent on the player's availability and standard contract terms.
How IPL pays players
IPL contracts are structured with installment payments, typically disbursed in parts before, during, and after the season. All payments, however, remain within the total auction value agreed for that year. Should a player become unavailable or be released under specific circumstances (such as force majeure), contract payments may be adjusted according to BCCI/IPL regulations. The precise details of these clauses are confidential and not disclosed publicly on a per-player basis.
Indian tax on Mustafizur
Under Section 115BBA of the Income Tax Act, foreign cricketers in the IPL are subject to a flat 20% tax on all Indian earnings, including match fees and other tournament-related income. Franchises are required to deduct this amount as Tax Deducted at Source (TDS) prior to payment. Consequently, for a contract of ₹9.20 crore, approximately ₹1.84 crore would be withheld as Indian tax, leaving a net amount of roughly ₹7.36 crore before any other liabilities.
Bangladesh tax and DTAA impact
India and Bangladesh have a Double Taxation Avoidance Agreement (DTAA) that prevents the same income being fully taxed twice; foreign tax credit or relief is available when Mustafizur files in Bangladesh. Practically, he will have to report this IPL income to Bangladesh tax authorities, and any additional tax or relief will depend on Bangladesh's domestic rules and how foreign tax credit is applied, so the net after Bangladesh tax is not precisely knowable from public data.
Other deductions from his earnings
Management fees, agent commissions, personal expenses, and professional costs like insurance further reduce the player's net income. As these percentages are privately negotiated, they are not publicly disclosed. Consequently, while the headline auction figure is ₹9.20 crore, a realistic estimate of his in-hand earnings after Indian tax but before Bangladeshi tax and private deductions would be in the range of ₹7-7.5 crore. His final post-tax income, after accounting for all liabilities, is likely to be somewhat lower than this band.
CAclubindia
