Section 194E – TDS from Payment to Non-resident Sportsman

Section 194E – TDS from Payment to Non-resident Sportsman or Entertainer or Sports Association:
If you are responsible to pay any amount in the way of income to any non-resident sportsman (including an athlete) who is not a citizen of India, you are required to deduct tax at source @ 20% plus surcharge as applicable if the payment exceeds Rs.1 crore plus education cess @ 2% plus SHEC @ 1%. The TDS rates chart for Sectin 194E is given below.

Section 194E – Quick Summary

Person Responsible to Deduct TaxAll assessees
Exemption LimitNil
Time of Deduction of TDSAt the time of payment or credit whichever earlier
Time for Deposit of TDSWithin one week from of the month of tax deduction. For month of March, before 30th April.
Certificate of TDSForm 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDSIn Form No. 27Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter
AO’s Certificate for Deduction at Lower Rate or Non DeductionNo
Is Self Declaration by Payee for Non Deduction AdmissibleNo
TDS Rate20%

TDS Rates Section 194E  for F.Y.2019-20 A.Y.2020-21

Non Resident (Individual/HUF/AOP/BOI)

  • Payment Less Than 50 Lakh – 20.8%
  • Payment 50 Lakh to 1 Crore – 22.88%
  • Payment Over 1 Crore – 23.92%

Non Residents Co-operative Society Firm

  • Payment Less Than 1 Crore – 20.80%
  • Payment Over 1 Crore – 23.296%

If Recipient is Non-Domestic Company

  • Payment 1 Crore or Less – 20.8%
  • Payment 1 Crore to 10 Crore – 21.216%
  • Payment Over 10 Crore – 21.84%

Categories TDS

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