Section 194E & 194EE of Income Tax Act

Section 194E

As per section 194E of the income tax act; if any income as referred to in section 115 BBA is payable to a non-resident sportsman (including an athlete) or an entertainer; who is not an Indian citizen or a non-resident sports association or institution; the person responsible for making payment shall deduct income tax at 20% plus surcharge as applicable; at the time of credit of such income to an account of the payee or at the time of payment thereof in cash or by cheque or draft; whichever is earlier. TDS at 20% and surcharge are applicable only if the payment exceeds Rs. 1 crore. 3% education cess & SHEC are also applicable.

Section 194E & 194EE of Income Tax Act

 

The income by the sportsman must be earned by way of participation in India in any game (excluding card game, gambling, betting, etc.).

The time for deposit of TDS to the government is within one week from the end of the month of the tax deduction. But for March, the due date is before 30th April. Form 16A is to be issued for each quarter within 15 days from the due date for furnishing the statement of TDS deduction, i.e., on or before 15th August, 15th November, 15th February and 15th June.

In case of deduction by or on behalf of the government, TDS shall be deposited on the same day.

Section 194EE of Income Tax Act

Section 194EE deals with the TDS on payments in respect of deposits under National Savings Scheme, etc.

As per this section; any person responsible for paying to any person any amount to the credit of such person under National Saving Scheme (referred to in clause (a) of sub-section (2) of section 80CCA) shall deduct income tax at 10% at the time of payment thereof, if the aggregate amount of such payments exceeds Rs. 2500.

You must note that no tax is deductible where the payment is made to heirs of a deceased assessee or where the tax on estimated total income of a resident individual in the PY including such withdrawal is nil and he furnish a declaration to that effect in Form 15-I and verified is prescribed manner by the person responsible for such payment.

The due date for deposit of TDS to the government is within one week from the end of the month of the tax deduction. But for March, the due date is before 30th April. Form 16A is to be issued for each quarter within 15 days from the due date for furnishing the statement of TDS deduction; i.e., on or before 15th August, 15th November, 15th February and 15th June.

In case of deduction by or on behalf of the government, TDS shall be deposited on the same day.

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