Section 194E TDS Payments to NR Sportsmen

Section 194E TDS Payments to NR Sportsmen



India’s love for cricket can’t be defined by a single ‘word’. Whenever there is any cricket match involving the Indian team or IPL, the madness is visible.

But have you ever wondered how many foreign players like Angelo Mathews, David Warner, etc., or even umpires are taxed in India? Not only cricket, but many international players regularly visit India for tournaments from all sports like football, hockey, boxing, and the list is endless.

This is where Section 194E plays a vital role, explicitly targeting income earned by sportsmen in India.

Who is required to deduct TDS u/s 194E?

  1. Any person who
  2. Pays money to a non-resident sportsperson (including an athlete) or an entertainer (who is not an Indian citizen); or
  3. Pays money to a sports institution or an association, an income as referred u/s 115BBA is required to deduct tax at source u/s 194E.


What is section 115BBA?

This section provides a special tax rate @ 20% (plus EC and SHEC), Plus Surcharge as applicable on specified income arising to a Non-Resident Sportsman, Entertainer, or Sports Association.

However, no deduction for any expenditure incurred and allowance is given to such assessee u/s 115BBA.
Specified income includes income from participating in any games/ sports/ performance or revenue from advertising or income from contributing articles in the newspaper. All such income should arise only in India.

What is the rate & time of tax deduction u/s 194E?

The rate of tax deduction u/s 194E is 20% exclusive of EC and Surcharge. And the time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).




For more information on this visit TAXAJ

Posted by Aashu
Team TaxaJ

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