NRI Sportsmen not required to file income tax return: Subject to condition!
Section115BBA of Income Tax Act 1961
As per section 115BBA of Income Tax Act 1961 non resident sportsmen who earns income from following:
- Participation in India in any game or sports
- Contribution of articles relating to any game or sport in India in newspaper, magazine, journal
Are taxable at the rate of 20%.
Further income of non resident sports association or institution, includes any amount guaranteed to be paid or payable to such association or institution in relation to game played in India is also taxable at the rate of 20%.
Section115BBA of Income Tax Act 1961 also covers income received by non resident entertainer which is taxable at the rate of 20%.
Non resident umpires or referees are outside the purview of section 115BBA of Income Tax Act 1961, as per the case of Indcom vs. Commissioner of Income Tax Calcutta High Court
194 E of Income Tax Act 1961
Person responsible for paying any sum as mentioned in section 115BBA to any non resident sports person or entertainer or non resident sports association or institution shall at the time or credit or at the time of payment deduct TDS at the rate of 20%.
Not to file income tax return.
If the total income of non resident assessee consist of income only from section 115BBA and TDS is deducted under section 194 E of Income Tax Act 1961 than assessee is not required to file return under section 139 of Income Tax Act 1961.