Section 115BBA of ITA, 1961 : Section 115Bba: Tax On Non-Resident Sportsmen Or Sports Associations

Explanation using Example

Imagine a famous non-resident tennis player, Maria, who is not an Indian citizen, comes to India to participate in a tennis tournament. She earns prize money for her participation, and also gets paid for advertisements and for writing an article about the sport for an Indian magazine.

Under Section 115BBA of the Income-tax Act, 1961, Maria's income earned in India from the tournament, advertisements, and the article would be subject to a flat tax rate of 20%, without any deductions for expenses.

If Maria's only income in India during the financial year is from these activities, and the tax has been deducted at source from her earnings, she is not required to file a tax return in India for that year.