Tax treatment of match fees received by resident cricketers

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This discussion clarifies the tax implications for Indian cricketers receiving match fees from the BCCI. It outlines specific deductions allowed based on the type of match: 75% for Test matches in India, the entire amount is considered spent for other Indian matches, and 50% deduction for matches played abroad. The advice also suggests using ITR 3 and consulting a CA for filing.

SImran

SImran (Querist)
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29 February 2020 Sir, please tell what kind of expenses would be allowed against match fees received by Indian cricketers from BCCI.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 February 2020 1. Test Matches in India: Amount actually received by the player from the cricket control board is taxable after allowing a deduction of an amount equal to 75% of such receipts in respect of reasonable expenses incurred to earn such income.
2. Other matches in India: Generally the entire receipts by the player from the board will be deemed to have been spent for earning such income and hence not taxable.
3. Matches outside India: A player will be allowed a deduction of 50% of the amount received for playing in foreign countries and the balance will be taxable.

SImran

SImran (Querist)
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03 March 2020 Dear Sir, Please let me know the section which is being referred here. Also which ITR form should I use to file such return. Thanks & Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2020 File ITR 3 contact CA nearby he will guide you.

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