Amended and updated notes on section 115BBA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to tax on non-resident sportsmen or sports associations.
Chapter XII (Sections 110 to 115BBG) of the Income Tax Act 1961 deals with the provisions related to determination of tax in certain special cases. Section 115BBA of IT Act 1961-2023 provides for tax on non-resident sportsmen or sports associations.
Recently, we have discussed in detail section 115BB (Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer) of IT Act 1961. Today, we learn the provisions of section 115BBA of Income-tax Act 1961. The amended provision of section 115BBA is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 115BBA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-115BBA: Tax on non-resident sportsmen or sports associations
Section 115BBA(1) of Income Tax Act
Where the total income of an assessee,—
(a) being a sportsman (including an athlete), who is not a citizen of India and is a non-resident, includes any income received or receivable by way of—
- (i) participation in India in any game (other than a game the winnings wherefrom are taxable under section 115BB) or sport; or
- (ii) advertisement; or
- (iii) contribution of articles relating to any game or sport in India in newspapers, magazines or journals; or
(b) being a non-resident sports association or institution, includes any amount guaranteed to be paid or payable to such association or institution in relation to any game (other than a game the winnings wherefrom are taxable under section 115BB) or sport played in India; or
(c) being an entertainer, who is not a citizen of India and is a non-resident, includes any income received or receivable from his performance in India,
the income-tax payable by the assessee shall be the aggregate of—
- (i) the amount of income-tax calculated on income referred to in clause (a) or clause (b) or clause (c) at the rate of twenty per cent; and
- (ii) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the amount of income referred to in clause (a) or clause (b) or clause (c):
Provided that no deduction in respect of any expenditure or allowance shall be allowed under any provision of this Act in computing the income referred to in clause (a) or clause (b) or clause (c).
Section 115BBA(2) of Income Tax Act
It shall not be necessary for the assessee to furnish under sub-section (1) of section 139 a return of his income if—
- (a) his total income in respect of which he is assessable under this Act during the previous year consisted only of income referred to in clause (a) or clause (b) or clause (c) of sub-section (1); and
- (b) the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income.