Section 194E: TDS on Payments to Non-Resident Sportsmen or Sports Association
India’s love for cricket can’t be defined by a single ‘word’. Whenever there is any cricket match whether involving the Indian team or IPL, the madness is clearly visible.
But have you ever wondered, how is the income of many foreign players like Angelo Mathews, David Warner etc or even umpires is taxed in India? Not only cricket, but many international players regularly visit India for tournaments from all sports like football, hockey, boxing, and the list is endless.
This is where, Section 194E plays a vital role, as it specifically targets income earned by sportsmen etc in India.
- Any person who
- Pays money to a non-resident sportsman (including an athlete) or an entertainer (who is not an Indian citizen); or
- Pays money to a sports institution or an association, an income as referred u/s 115BBA is required to deduct tax at source u/s 194E.
This section provides a special tax rate @ 20% (plus EC and SHEC), Plus Surcharge as applicable on specified income arising to a Non-Resident Sportsman or Entertainer or Sports Association.
However, no deduction for any expenditure incurred and allowance is given to such assessee u/s 115BBA.
Specified income includes income from participating in any games/ sports/ performance or income from advertising or income from contributing articles in the newspaper. All such income should arise only in India.
The rate of tax deduction u/s 194E is 20% exclusive of EC and Surcharge. And the time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).
Section 194EE: TDS on Payment for Deposit Under NSSWho is required to deduct TDS u/s 194EE?
Any person who pays an amount under section 80CCA(2)(a) i.e. National Savings Scheme to another person is required to deduct tax under this section.What is the rate & time of tax deduction u/s 194EE?
The rate of tax deduction u/s 194EE is 10% and the time of deduction is when the payment is made.What is the rate & time of tax deduction u/s 194H?
The rate of tax deduction u/s 194H is 5%. And the time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).No Requirement of TDS :
- When the amount paid (at once or total during the financial year) to the payee (i.e. the receiver) is less than ?2500.
- No deduction when the amount is given to the heirs of the assessee.
Frequently Asked Questions
Q- Is NSS withdrawal taxable?
Ans. NSS withdrawals are fully taxable and it is taxed under income from other sources.
Q- Is NSS 87 withdrawal taxable?
Ans. Go to nearest aadhar card center, parents aadhar card along with child birth certificate is required for enrol child for aadhar. the kids aadhar is linked with parents aadhar.
Q- How can I invest in NSS?
Ans. To invest in NSS you are required to visit the nearest post office.
Q- What is TDS 194?
Ans. TDS under section 194 is for the dividend covered under sec 2(22)(e).
Q- What is NSC scheme?
Ans. NSC scheme is indian government saving scheme primarily used for small savings and income tax saving. this can be purchased from any post office
Last Date : New
People also ask
- The Most Comprehensive Guide on TDS in India
- TDS Return Filing Online
- Form 16B
- Form 16C
- Form 15G & 15H: Save TDS on Interest Income
- TRACES Login: Login into TDS TRACES Website
- TRACES Registration: Register on TDS TRACES Website
- Section 192 : TDS on Salary Computation under Income Tax Act
- Section 194L Series : Payment of Compensation on Acquisition of Capital Asset
- Section 194A: TDS on Interest other than Interest on Securities
- Section 194B & 194BB : TDS On Winning From Lottery Or Race Horse
- Section 194D & Section 194DA : TDS on Insurance Commission
- Section 194H: TDS on Commission & Brokerage
- Section 194I, 194IB & 194IC: TDS On Rent
- Section 194-IB: TDS On Rent Of Property
- Section 194G & Section 194H under Income Tax Act
- Section 194M: TDS on Payment to Resident Contractors and Professionals
- Section 195: TDS on NRI Selling Property In India
- TDS Challan ITNS 281: Pay TDS Online with e-Payment Tax
- TDS Payment Online: Procedure & Types Of Challans
- OLTAS Application: View challan status on TRACES
- Section 44AD: Presumptive Taxation Scheme
- TDS on Withdrawal from the EPF Account
- TDS Return on Salary Payment
- TDS Return on Payments to NRIs
- TDS on Purchase of Immovable Property
- TDS Return filing for Non Salary Deductions
- Post Office Monthly Income Scheme: Interest Rate & Features
- Difference between TDS in Income Tax and TDS in GST
- TDS Return Filing Online: Eligibility, Due Dates & Revised TDS
- Form 16B: Download TDS Certificate for Sale of Property
- Form 16C: TDS Certificate for Rent of Property
- Form 24Q: TDS Return on Salary Payment
- Form 26Q: TDS Return filing for Non Salary Deductions
- Form 26QB: TDS on Purchase of Immovable Property
- Form 27Q: TDS Return on Payments to NRIs