Section 194E of Income Tax Act for AY 2023-24

Section 194E of Income Tax Act 1961 amended by Finance Act and Income-tax Rules. Payments to non-resident sportsmen or sports associations.

Amended and updated notes on section 194E of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Payments to non-resident sportsmen or sports associations.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194E of IT Act 1961 provides for Payments to non-resident sportsmen or sports associations.

Recently, we have discussed in detail section 194DA (Payment in respect of life insurance policy) of IT Act 1961. Today, we learn the provisions of section 194E of Income-tax Act 1961. The amended provision of section 194E is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 194E of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

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

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.


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