Cricketers in India are often rewarded with expensive gifts. These gifts can be cars, bikes, or other luxury items. They are given as a mark of appreciation for good performances.
A recent example is Indian opener Abhishek Sharma. He was the star of the 2025 Asia Cup. Abhishek was named Player of the Tournament for his consistent batting. To celebrate his success, he was gifted a luxury Haval H9 SUV. The car was presented to him after India’s title win.
While such gifts look free, they are not fully tax-free under Indian Income Tax laws.
Taxability of gifts under Indian law
Income Tax rules in India are clear. Any gift received from a non-relative is taxable at market value. That means if a company, brand, industrialist, or fan gifts something, the receiver has to pay tax on it.
This applies to all luxury gifts, whether it is a car, a bike, or another high-value item. But gifts from close relatives like parents, siblings, or a spouse are exempt from tax.
“Income Tax rules clearly state that gifts received from non-relatives are taxable at their market value,” the law explains. “According to the Income Tax Act, 1961, if an individual receives a gift from a company, brand, industrialist, fan, or any non-relative, the current market value of the gift is added to the person’s taxable income.”
For top cricketers, this usually means paying the highest tax rate of 30 percent. On top of this, a four per cent health and education cess is also charged. This makes the effective tax rate around 31.2 percent.
So, if a cricketer receives a car worth ₹20 lakh, the tax liability would be about ₹6.24 lakh. The car may be gifted by someone else, but the tax must be paid by the player.
This is important for both cricketers and fans to understand. Luxury items may look like free rewards. But under tax laws, their value becomes part of taxable income.
In short, Abhishek Sharma may have received a dream SUV. But he will also have to deal with the taxman.
