After taking Clue from the success of IPL(Indian Premier league) and money involved in it ,as you have heard at the time of IPL is running that department is exploring the way how to collect or tax the event or under which provision they can be called but they find little provisions so now the department has extended the scope of the Services covered under section 194J and included the various persons involved in the games like players,umpires etc etc.
No doubt this section will be applicable to all the sports but its clear that it has been added specially for the Indian Cricketers as they are earnings are too high to absorb by the Department.Even columnist & commentators have not been spared .Complete Notification is given here under
SECTION 194JOF THE INCOME-TAX ACT, 1961-DEDUCTION AT SOURCE OF TAX – NOTIFIED PROFESSIONAL SERVICES
In exercise of the powers conferred by clause (a) of the Explanation to section 194J of the Income Tax Act, 1961, Central Board of Direct Taxes hereby notifies the services rendered by following persons in relation to the sports activities as “Professional Services” for the purpose of the said section, namely: –
Sports Persons,
Umpires and Referees,
Coaches and Trainers,
Team Physicians and Physiotherapists,
Event Managers,
Commentators,
Anchors and
Sports Columnists.
2. This notification shall come into force with effect from the date of its publication in the Official Gazette.
NOTIFICATION NO. 88/2008/F.NO. 275/43/2008-IT(B), DATED 21-8-08
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