Table of Contents
1. What is section 115BBA of the income tax Act?
- Section 115BBA provides the tax rates in respect of certain incomes received by non-resident sportsman, sports associations and entertainers.
- Refer FAQ no 3 to know more about the incomes specified under this section.
2. To whom is section 115BBA applicable?
- Section 115BBA applies to non-resident & non-citizen sportsman, sports association and entertainer.
3. What are the incomes specified under section 115BBA?
- Income received by a sportsman from,
- Participation in India in any game or sport (other than those mentioned under section 115BB – e.g. Winnings from lottery, horse racing etc.)
- Advertisement
- Contribution of articles relating to any game or sport in India in newspapers, magazines or journals
- In case of a non-resident sports association or institution, any amount guaranteed to be paid or payable to such association or institution in relation to any game or sport played in India.
- Income of an entertainer where such income is received or receivable by way of performance in India.
4. What is the rate of tax applicable for the income under section 115BBA?
- Income under section 115BBA is taxed at the rate of 20%. plus, surcharge and cess.
5. Can any expenditure be allowed as deduction while computing income under section 115BBA?
- No deduction in respect of any expenditure or allowance shall be allowed under any provision of the Income Tax Act in computing the income as per section 115BBA.
6. Is it necessary to deduct TDS on income that is taxable under section 115BBA?
- Yes, the person responsible for making such payment is required to deduct TDS under section 194E at the rate of 20%.
5. Is furnishing of returns necessary for an assessee having income taxable under section 115BBA?
- If the Assesee does not have any other income other than income covered under section 115BBA, the assesse need not file a return of income under section 139(1).