• Sep
  • 02
  • 2008

CBDT Expand Definition of Professionals

The Central Board of Direct Taxes (CBDT) expanded the scope of professional services to cover sportspersons, umpires and referees, making them liable for a higher tax deduction at source (TDS) at the rate of 10% against 1-2%.  

Sportspersons who are amateurs and do not play for commercial gain are exempted from the ambit of this tax.According to the notification, the CBDT has categorised services rendered by sportspersons, umpires and referees, coaches and trainers, team physicians and physiotherapists, event managers, commentators, anchors and sports columnists as professional services.

The professionals were covered by Section 194C of the Income-Tax Act, which made them eligible for a lower TDS rate of 1-2%. With this notification, they would now be covered under 194J of the I-T Act.

Sandeep Kanoi

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