Section 194E - TDS on payment to non-resident sportsmen or sportsmen association or entertainer - Income Tax - Ready Reckoner - Income Tax

Section 194E : TDS on payment to non-resident sportsmen or sportsmen association or entertainer (A) Where any person is responsible to pay any income to any non resident sportsman who is not a citizen of India, he is required to deduct tax at source @20% . The income must have been earned by the sportsman by way of- participation in India in any game (excluding card game, gambling, betting etc.) or sports advertisement or contribution of articles relating to any game or sport in India in newspapers, magazines or journals. (B) Any person responsible to pay any income to a non resident sport association in relation to any game or sport played in India, shall deduct income tax thereon @20% (C) Where any person is responsible to pay any income to any non resident, non-citizen entertainer for any performance in India, he is required to deduct tax at source @20% . Note: In case of non-resident, the rate of TDS shall include surcharge if applicable + education cess. Important Points The payment made to non-resident Umpires and Match Referees are Income which has accrued and arisen in India, the same are not taxable under the provisions of section 115BBA and thus, the assessee is not liable to deduct tax u/s 194E. [ INDCOM Vs CIT(TDS), 2011 (5) TMI 307 - CALCUTTA HC ]