Table of Contents
1. Section 194E of the Income Tax Act, 1961?
Section 194E contains provisions relating to TDS on payments made to non-resident sportspersons.
2. What are the incomes for which tax should be deducted under this section?
- 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.
3. What is section 115BBA of the Income Tax Act, 1961?
Refer this link to know more about section 115BBA of the Income Tax Act
FAQs on Section 115BBA – Tax rates for specified income of non-resident sportsman
4. What is the rate of TDS as per section 194E?
TDS will be deducted at the rate of 20%, plus cess and surcharge, if applicable.
5. When should tax be deducted under this section?
Tax should be deducted at the time of credit of income to the account of the payee or at the time of actual payment whichever is earlier.
6. Does the provisions of this section apply to residents?
No, section 194E applies only to non-residents.