Income Tax eFiling for Sports Person and tax provisions

Income Tax eFiling for Sports Person and tax provisions

Sport person receives certain amount from their respective authorities, which can be treated as income from profession and shall be classified under profits and gains from business or profession. Tax rate shall be as per the individual slab rates for a resident sport person, in case of a non resident sports person the rate of tax shall be different which shall be discussed later on


Major sources of income for sports person. 
1.Income from participating in the sporting events 
2.Income from Advertisements

Certain major deductable expenditure from the income of sports person.

1.Expenditue incurrent on dietary and fitness such as purchase of supplements, food, etc. 
2.Salaries or other charges paid to a coach or a trainer. 
3.Expenditure such as rent and maintenance of the building which is taken on lease for the purpose of training. 
4.Expenditure incurred on replacement of certain training equipment. 
5.Depreciation on the training equipment.

TDS provisions for a resident sports person

Any amount payable to a sports person shall be paid after deducting tax at source @ 10% on the total under section 194J (TDS in professional and technical services) 
Yes..! no need to maintain books of accounts, neither maintain a register of bills nor maintain details of receipts of the income earned. 
1)As per the new amendment in the finance act 2016 a new concept of presumptive income is applicable to the doctors in the following cases. 
i)For the professionals who are sports person whose nature of receiving the income is in the nature of sole proprietorship, Partnership, or HUF, if the total gross receipts in the previous year done not exceed Rs. 50,00,000, there is not requirement of filing tax audit report for the said business, provided the rate of income declared on such presumptive income is not less than 50% of the gross receipts 
ii)No books of accounts are required to be maintained under section 44ADA 
iii)income shall be declared @ of 50% on the total receipts/ turnover in the relavent previous year. 
iv)However Advance tax has to be paid even for such professionals in one instalment which shall be 15th march of the relevant previous year

Income Tax Provisions for a Non Resident Sports person

Where any income earned by a sports person by the way of participating in the sporting events or by the way of endorsing for any advertisements, such total income shall be taxable at a rate of 20% of such income under section 115BBA. 
No expenditure shall be allowed on such income earned by the non resident, i.e entire amount shall be subject to Income Tax.

TDS provisions for a Non Resident sports person

Any amount payable to a Non resident sports person shall be paid after deducting tax at source @ 20%.