India’s young chess prodigy, D Gukesh, has rewritten history by clinching the coveted World Chess Championship title in Singapore on December 12, 2024. At just 18 years old, Gukesh defeated reigning champion Ding Liren of China to become the youngest chess world champion, an achievement that has brought him immense fame, fortune, and recognition on a global scale. This victory is not only a significant milestone for Gukesh but also a proud moment for Indian chess enthusiasts and sports lovers.

With his stellar performance, Gukesh earned Rs 11.45 crore as prize money from the championship and an additional reward of Rs 5 crore from the Tamil Nadu government. The total reward pool stands at a whopping Rs 16.45 crore, an amount that has sparked curiosity about how the young Grandmaster plans to utilize his newfound wealth.

Tax Relief for Gukesh: A Game-Changing Decision

Typically, such significant earnings in India are subject to substantial tax deductions. Under Indian tax regulations, prize money is taxed at 30%, along with a 15% surcharge and 4% health and education cess, leading to an effective tax rate of 42.5%. Initially, it was calculated that Gukesh would need to pay approximately Rs 6.23 crore in taxes, leaving him with around Rs 10.22 crore.

However, in a remarkable gesture of recognition, the Finance Ministry of India has announced a tax exemption for Gukesh’s winnings. This rare decision ensures that the young chess champion will retain the full amount of his prize money. The government’s move has been widely praised as a way to encourage young talent and promote chess as a sport in India.

How Much Gukesh Stands to Gain

After the tax exemption, Gukesh will receive the full prize money of Rs 11.45 crore from the championship. Additionally, the Rs 5 crore reward from the Tamil Nadu government will also be exempt from taxes. As a result, Gukesh will have a total of Rs 16.45 crore at his disposal.

This generous recognition by both the Indian government and the Tamil Nadu state government highlights the importance of supporting young achievers and encouraging sports development in the country.

What’s Next for Gukesh?

The big question on everyone’s mind is how Gukesh plans to utilize his prize money. While he has not publicly disclosed his plans, several possibilities come to light based on the young Grandmaster’s aspirations and the requirements of professional chess players:

1. Investment in Training and Resources Gukesh’s journey to the top has required rigorous training, access to world-class coaches, and advanced chess software. With this newfound wealth, he could invest in enhancing his training infrastructure, hiring elite chess coaches, and participating in more international tournaments to solidify his position as a global chess icon.
2. Support for Upcoming Talent Given his meteoric rise, Gukesh might use a portion of his prize money to mentor and support budding chess players in India. Establishing an academy or scholarship fund for young players could be a way for him to give back to the chess community.
3. Philanthropic Endeavors Many athletes choose to contribute to society by engaging in philanthropic activities. Gukesh could use his winnings to support education, promote sports in rural areas, or contribute to social causes close to his heart.
4. Personal Investments Like any individual stepping into financial abundance, Gukesh may consider making personal investments in real estate, stocks, or mutual funds to secure his financial future.
5. Technology and Chess Innovation Chess is increasingly becoming intertwined with technology. Gukesh might explore avenues to develop or invest in innovative chess technologies, such as advanced analytical tools or gaming platforms, to enhance the sport’s accessibility and popularity.

A Star in the Making

Gukesh’s victory has not only brought him financial rewards but also widespread recognition. The chess prodigy’s achievements have drawn comparisons to legends like Viswanathan Anand, India’s first chess world champion. Anand himself has been a mentor and inspiration to Gukesh, and this historic win further cements India’s reputation as a powerhouse in the world of chess.

The Rise of Indian Chess

Gukesh’s success is a testament to the growing prominence of chess in India. Over the past decade, the country has witnessed a surge in young talent, with players like Praggnanandhaa, Nihal Sarin, and Arjun Erigaisi making waves on the international stage. The support from the government, private sponsors, and the All India Chess Federation has been instrumental in nurturing this talent pool.

With Gukesh’s victory, Indian chess is poised for a new era of growth. His journey is likely to inspire thousands of young players to take up the sport and aim for excellence.

Government Support and Public Recognition

The Indian government’s decision to exempt Gukesh’s prize money from taxes is a significant move that underscores the importance of supporting athletes. It sets a precedent for recognizing extraordinary achievements in sports and offering financial incentives to encourage more participation.

Additionally, public recognition and accolades have poured in for Gukesh from all corners of the country. From congratulatory messages by Prime Minister Narendra Modi to celebrations in his hometown in Tamil Nadu, the nation has united in celebrating his remarkable achievement.

Challenges Ahead

While Gukesh basks in the glory of his historic win, the road ahead is filled with challenges. As the reigning world champion, he will face immense pressure to defend his title and continue performing at the highest level. The chess world is highly competitive, with players constantly analyzing each other’s strategies and evolving their game. Gukesh’s ability to adapt, innovate, and stay mentally resilient will determine his longevity at the top.

Conclusion

D Gukesh’s journey from a young chess enthusiast to the world champion is a story of determination, talent, and hard work. His victory has not only brought pride to India but also highlighted the country’s growing stature in the global chess arena. With his newfound wealth, Gukesh has the opportunity to shape his future and contribute to the growth of chess in India.

As the youngest chess world champion, Gukesh has already etched his name in history. His journey is far from over, and the world eagerly awaits the next chapter in the life of this extraordinary talent. For now, Gukesh can celebrate his well-deserved victory and look forward to a bright and promising future both on and off the chessboard.