Arjuna (fictional character): Krishna, recently players were purchased in crores of rupees for IPL cricket matches. All are crazy about cricket. How income tax is levied on the money received by the players, so that player will not get LBW out in front of Income Tax Department?
Krishna (fictional character): Arjuna! In India cricket is introduced by the British people. From little children to old age people all get engrossed in the cricket. At various places by organizing cricket tournaments name, fame and inspiration etc. is received. As in old days, kings by organizing competitions between the players in his empire entertains all people and himself. Same is case of IPL cricket. Impacts of many good and bad things were arising on the cricket game. As the turnover of money is in crores, Income Tax Department, CBI, Anticorruption Departments are very keen on the players. Due to which many players lost their wickets once for all. Through various rules Income Tax Department is collecting tax on the income of the players.
Arjuna: What if income earned by the players from the Government approved cricket tournaments?
Krishna: If Income Tax Department has given exemption to the special recognized international tournaments taken by BCCI for e.g. World Cup etc. then the income received by players is tax free u/s 10 (39).
Arjuna: What about Professional IPL Cricket tournament?
Krishna: Players will have to pay tax on the income received anywhere in India or in abroad from the professional tournaments. As department levies tax considering, it as a part of their profession.
Arjuna: The players earn from advertisements, modeling along with IPL. What about its taxation?
Krishna: Players will have to pay income tax on all these earnings. Further service tax will also have to be paid.
Arjuna: What about gifts/ rewards received by the players?
Krishna: Gifts / Rewards given by the Government are tax free if they fall in the rules of Income Tax. Further players will have to pay income tax on the gifts received from the professional competitions e.g. car, motorcycle, etc. further the organizers will have to deduct tax on the same at source.
Arjuna: How Players should play in front of Income tax department along with cricket?
Krishna: Nowadays lot of money is received from cricket. Therefore many parents are expending on the training of cricket to their children. It is good for cricket. But in greed of money, bating, fraud, etc. is increased in cricket. So now it can be said that cricket did not remained as gentlemen’s game. If player remained vigilant while playing he can score runs through fours and sixes by heating right shot at right time, otherwise wicket falls. Similarly, if Income Tax return, Service Tax returns, etc. filed appropriately and within time then department cannot take his wicket. It means players will not get trapped and out from the fielding of income tax department. As umpire and third umpire have watch on the behavior of players knowingly or unknowingly while playing and they levies penalty on the players if mistaken. Similarly sports loving people and income tax department have watch on the player’s general and financial transactions. Therefore players should live their life honestly and with due respect thereby they should teach their fans good values. Players should not get surrounded in the Fame and Money only. All cricket lovers have the expectation that the name of country to be brightened more and more. “Earn money from playing game, but game of money should not be played”
Dear Circket and Tax Lovers, your comments please
CAclubindia
