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Income-tax Act, 1961 · Chapter XVII: Collection and Recovery of Tax · B.—Deduction at source

Section 194E: Payments to non-resident sportsmen or sports associations

The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.

In plain words

This rule requires anyone paying income to a non-resident sportsman, athlete, entertainer, or sports association to deduct tax at source. The deduction happens when the money is credited or paid, whichever occurs first. This ensures tax is collected on specific sports-related earnings received by individuals or groups outside India.

  • Applies to income referred to in section 115BBA.
  • Payee must be a non-resident sportsman, athlete, entertainer, sports association, or institution.
  • The non-citizenship condition applies to the sportsman, athlete, or entertainer.
  • Deduction happens at the time of credit or payment, whichever is earlier.
  • Payment can be in cash, cheque, draft, or any other mode.
  • Income-tax is deducted at the rate of twenty per cent.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

Where any income referred to in section 115BBA is 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, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of [twenty per cent.].]

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 194E