Annual Information Statement (AIS) – Payment to non-resident sportsmen or sports association under section 115BBA
The new Annual Information Statement comprises 50 different information categories. The present article deals with one such information category, namely, ‘Payment to non-resident sportsmen or sports association u/s 115BBA’.
Understanding relevant taxing provision covered under section 115BBA and TDS provision covered under section 194E of the Income Tax Act-
Section 115BBA deals with the situation when the total income of non-resident includes any of the following income-
| Particulars about the non-resident | Type of income |
| Non-resident sportsman (including an athlete) | Income by way of participation in any game or sport in India or advertisement or contribution of an article, in newspaper or magazine or journal, covering any game or sport in India. |
| Non-resident sports association or sports institution | Amount paid/ payable in relation to any game or sport played in India. |
| Non-resident entertainer | Income from his performance in India |
As per section 115BBA, the non-resident is liable to pay income tax @ 20% on any of the above income earned in India.
TDS provisions attached with this income, as covered under section 194E of the Income Tax Act, states that the person responsible for paying the above referred income is liable to deduct TDS @ 20%. TDS is deductible within earlier of the following dates-
- At the time of credit of income; or
- At the time of payment of income in cash or cheque or draft or any other mode.
Source of information under ‘Annual Information Statement’ for the information category ‘payment to non-resident sportsmen or sports association u/s 115BBA’-
The deductor, liable to deduct tax under section 194E, is required to-
- Furnish TDS return/ statement in Form 27Q; and
- Issue TDS certificate in Form 16A to the deductee.
Accordingly, information/ details furnished by the deductor in Form 27Q will be taken up as a source of information under AIS.
‘Annual Information Statement’ processing of the information received under the referred information category-
Information fetched from Form 27Q, filed by the deductor, will be processed under AIS in the following way-
1. Income taxable as per section 115BBA, on which TDS is deducted under section 194E, will be held taxable in the hands of the recipient; and
2. Such income will be treated as taxable under the head ‘Income from other sources’.
Author Bio
Nice Article. So TDS on all income @20 percent?