Section 115BBA: Tax on Non-Resident Sportspersons, Sports Associations and Entertainers
Section 115BBA of the Income-tax Act, 1961 prescribes a special rate of income tax for specified Indian-source receipts of foreign non-resident sportspersons and entertainers, and for certain receipts of non-resident sports associations or institutions.
1. Who is covered under Section 115BBA?
Non-resident sportspersons and athletes - Section 115BBA(1)(a)
An individual who is not an Indian citizen and is non-resident is covered in respect of specified income received or receivable from:
- Participation in India in any game or sport, excluding a game whose winnings are taxable under Section 115BB.
- Advertisements covered by the provision.
- Contributing articles relating to a game or sport in India to newspapers, magazines or journals.
For example, qualifying appearance fees paid to a non-resident foreign athlete for playing in India may be taxable under this section.
Non-resident sports associations or institutions - Section 115BBA(1)(b)
The provision also applies to amounts guaranteed to be paid or payable to a non-resident sports association or institution in relation to a game or sport played in India, excluding games whose winnings fall under Section 115BB.
Non-resident entertainers - Section 115BBA(1)(c)
An entertainer who is not an Indian citizen and is non-resident is covered for income received or receivable from a performance in India. This category was added with effect from 1 April 2013.
2. Tax rate and computation under Section 115BBA(1)
| Category of qualifying receipt | Special income-tax rate |
|---|---|
| Foreign non-resident sportsperson: covered participation, advertising or sports writing receipts | 20% |
| Non-resident sports association or institution: covered guaranteed payments | 20% |
| Foreign non-resident entertainer: income from performance in India | 20% |
Under clause (i), tax on covered income is calculated at 20%. Under clause (ii), tax on any remaining income is calculated as though the covered income were excluded from total income. Surcharge and cess may increase the final liability, depending on the taxpayer and circumstances.
Illustrative calculation
If a qualifying non-resident foreign entertainer earns Rs. 10,00,000 from a performance in India, the basic tax under Section 115BBA is Rs. 2,00,000 (20% of Rs. 10,00,000), before applicable surcharge and cess. This example assumes the full receipt is covered by Section 115BBA and does not consider treaty relief.
3. No deduction for expenses or allowances
The proviso to Section 115BBA(1) expressly disallows any deduction for expenditure or allowance when computing income covered by clauses (a), (b) and (c). Accordingly, travel, accommodation, training, agent commissions, production costs or similar expenditure cannot be deducted against covered receipts merely because they were incurred to earn that income.
4. Tax deduction at source - Section 194E
Section 194E of the Income-tax Act, 1961 requires a person responsible for paying income referred to in Section 115BBA to deduct tax at source at the prescribed rate, generally 20%, at the time of credit or payment, whichever is earlier. Applicable surcharge and cess, and any legally available treaty relief, require separate consideration.
Payment documentation, residential status, the nature of the contract, treaty eligibility and withholding compliance should be checked before remittance. See the Income Tax Department and income-tax e-filing portal for current statutory guidance and compliance facilities.
5. When is filing an income-tax return not necessary?
Section 115BBA(2) provides a limited relaxation from furnishing a return under Section 139(1) where both conditions are met:
- The assessee's total income assessable in India for the year consists only of income specified in Section 115BBA(1); and
- Tax deductible at source under Chapter XVII-B has been deducted from that income.
This is not a general exemption from return filing for every non-resident sportsperson or entertainer. Other Indian taxable income, incomplete withholding or other applicable filing requirements may change the position.
6. Important statutory terms and distinctions
- Non-resident: Residential status is determined under the applicable residence rules, including Section 6 of the 1961 Act for relevant earlier tax years; nationality and residence are separate tests.
- Sportsperson: Includes an athlete, subject to the non-residence and non-citizenship conditions in clause (a).
- Sports association or institution: A non-resident association or institution receiving covered guaranteed payments for games or sports played in India.
- Entertainer: A non-resident individual who is not an Indian citizen and receives income from a performance in India.
- Section 115BB: Governs specified lottery, betting and gaming winnings. Such winnings are distinct from covered sporting participation income under Section 115BBA.
7. Double taxation agreements and treaty relief
Where an applicable Double Taxation Avoidance Agreement (DTAA) provides a more beneficial treatment, Section 90(2) may permit the taxpayer to rely on treaty provisions, subject to eligibility, documentation and anti-abuse rules. Sportspeople and entertainers may be addressed by a dedicated treaty article, often concerning artistes and sportspersons. Treaty outcomes depend on the actual agreement and facts; a lower rate should not be assumed automatically.
8. Income-tax Act, 2025 - transition from 1 April 2026
The Income-tax Act, 2025 comes into force on 1 April 2026. Its provisions govern the relevant tax years under the new framework, while the Income-tax Act, 1961 continues to be relevant for earlier years and transitional matters. Taxpayers should check the corresponding provisions and withholding rules in the new Act rather than applying old section numbers to a new tax year without verification.
The consolidated new legislation and official materials are available through the Income Tax Department and India Code.
9. Legislative history
Section 115BBA was inserted by the Finance Act, 1989 (Act 36 of 1989), with effect from 1 April 1990. The Finance Act, 2012 (Act 23 of 2012), effective from 1 April 2013, extended the section to qualifying non-resident foreign entertainers and raised the special rate from 10% to 20%.
10. Frequently asked questions
What is the tax rate under Section 115BBA?
The basic special rate is 20% on qualifying receipts, plus applicable surcharge and cess.
Can a foreign athlete deduct travel and accommodation costs?
No. Section 115BBA(1) expressly disallows deductions for expenditure or allowances in computing income covered by the section.
Is every non-resident entertainer covered?
No. The provision applies to a non-resident entertainer who is not an Indian citizen, in respect of income received or receivable from a performance in India.
Is TDS applicable to payments under Section 115BBA?
Yes. Section 194E provides for withholding on covered payments, subject to applicable legal and treaty considerations.
Must a person with only Section 115BBA income file a return?
Section 115BBA(2) provides a limited exemption from return filing where the person's total assessable income consists only of covered income and the required tax has been deducted at source.
Official legal resources
- Income Tax Department - legislation, rules and circulars
- India Code - central legislation
- Income-tax e-filing portal
This article provides general legal information. The applicable law, treaty, tax year, payment classification and individual facts should be verified before filing or withholding tax.