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TDS on Payments to Non-Resident Sportsmen or Sports Association (Sec-194E)

Applicability

Any person who

  • Pays money to a non-resident sportsman (including an athlete) or an entertainer (who is not an Indian citizen); or
  • Payment of money to a sports institution or an association will be referred u/s 115BBA is required to deduct tax u/s 194E.
  • Contributes articles or advertisements relating to any game in india in newspapers or magazines.
  • Section 115BBA

  • This section provides a special tax rate @ 20% (not including cess), Plus Surcharge as applicable(if payment exceeds 1 crore) on specified income arising to a Non-Resident Sportsman or Entertainer or Sports Association.
  • Specified income includes income from participating in any games/ sports/ performance or income from advertising or income from contributing articles in the newspaper. All such income should arise only in India.

    Rate of TDS

  • The rate of tax deduction u/s 194E is 20% (including cess and surcharge) and the time of deduction is either at the time of credit of such  income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).
  • Return Filing

  • The Deductor, under section 194E of the Income Tax Act, 1961, is required to furnish TDS return in Form 27Q. The TDS return in form 27Q is to be filed on a quarterly basis within the following prescribed due dates –
  • April to June – 31st July
  • July to September – 31st October
  • October to December – 31st January
  • January to March – 31st May