Payments to non-resident sportsmen or sports association [Section 194E] under Deduction of Tax at Source :

(1) This section provides for deduction of tax at source in respect of any income referred to in section 115BBA payable to a non-resident sportsman (including an athlete) or an entertainer who is not a citizen of India or a non-resident sports association or institution.

(2) Deduction of tax at source @20% should be made by the person responsible for making the payment.

(3) Such tax deduction should be at the time of credit of such income to the account of the payee or at the time of payment there of in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

(4) The following are the income referred to in section 115BBA –

(i) income received or receivable by a non-resident sportsman (including an athlete) by way of –

(a) participation in any game or sport in India (However, games like crossword puzzles, horse races etc. taxable under section 115BB are not included herein); or

(b) advertisement; or

(c) contribution of articles relating to any game or sport in India in newspapers, magazines or journals.

(ii) Guarantee amount paid or payable to a non-resident sports association or institution in relation to any game or sport played in India. However, games like crossword puzzles, horse races etc. taxable under section 115BB are not included herein.

(iii) income received or receivable by a non-resident entertainer (who is not a citizen of India) from his performance in India.