Income Tax Guide · AY 2026-27

Income Tax for Sportspersons —
Resident vs Non-Resident

How prize money, IPL & BCCI income, endorsements and government awards are taxed — slab rates for residents, a flat 20% for non-residents under Section 115BBA, and the Section 10(17A) award exemption.

Updated for AY 2026-27 Reviewed by tax experts Residents & non-residents

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SlabResidents

20%Non-residents 115BBA

NilGovt sports awards

Rs12LNew-regime rebate cap

Quick Answer

A resident sportsperson is taxed at normal slab rates on all income — match fees, prize money, IPL/BCCI pay and endorsements. A non-resident sportsperson pays a flat 20% (Sec 115BBA) on India income from participation, advertisements and sport articles, with no deductions. Cash awards from the Central or State Government (Olympic prize money, Khel Ratna, Arjuna) are fully exempt under Section 10(17A). Section 80RR was withdrawn from AY 2004-05.

Resident Slab rate

Non-resident 20% flat

Govt award Exempt

IPL / BCCI Slab rate

At a glance

How Each Type of Sports Income Is Taxed

Every common income stream for a sportsperson, and how it is treated for a resident versus a non-resident under the Income-tax Act.

Income Type	Resident	Non-Resident	Section
Prize money (private tournament)	Slab rate	20% flat	115BBA / Slab
Match fees / appearance fees	Slab rate	20% flat	115BBA / Slab
BCCI central contract	Slab rate	20% flat	115BBA / Slab
IPL franchise salary	Slab rate	20% flat	115BBA / Slab
Brand endorsement / advertisement	Slab rate	20% flat	115BBA / Slab
Olympic / Govt cash award	Exempt	Exempt	10(17A)
Khel Ratna / Arjuna (Govt)	Exempt	Exempt	10(17A)
Income from playing abroad	Slab (global)	India-source only	DTAA may apply
Sec 80RR (forex) deduction	Withdrawn	N/A	80RR (repealed)

For AY 2026-27 these provisions sit in the Income-tax Act, 1961; the Income-tax Act, 2025 renumbers them prospectively from FY 2026-27. Confirm on incometax.gov.in.

Non-resident sportspersons

Section 115BBA — The Flat 20% Rule

Section 115BBA creates a special regime for non-resident sportsmen, non-resident sports associations/institutions and non-resident entertainers. A foreign cricketer in the IPL or an overseas golfer at an India Open is taxed at a flat 20% on gross India income from:

Participation in any game or sport in India — match fees, prize money, appearance fees.
Advertisement — endorsing products or services in connection with an event in India.
Articles relating to any game or sport in India, in newspapers, magazines or journals.

20% is on gross — no deductions, no exemption limit

Under Section 115BBA there is no deduction for expenses, no Chapter VI-A benefit (80C, 80D) and no basic exemption limit. Surcharge (if applicable) and 4% Health & Education Cess apply on top. The payer must deduct TDS at 20% under Section 194E before remitting.

Because 115BBA taxes gross receipts, a non-resident sportsperson whose only India income is covered by it is not even required to file a return where TDS under Section 194E fully discharges the liability. A DTAA between India and the sportsperson's home country can modify the outcome.

Non-resident earning from an event in India? Get your 115BBA & DTAA position checked.

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Awards & prize money

Section 10(17A) — Government Sports Awards Are Exempt

Under Section 10(17A), any award instituted in the public interest by the Central or State Government — or a payment approved by the Central Government in this behalf — is fully exempt. For sportspersons this covers cash rewards announced by governments for medallists and the major sporting honours.

Award / Prize	Taxable?	Basis
Central/State Govt cash award to Olympic medallist	Exempt	Section 10(17A)
Major Dhyan Chand Khel Ratna Award	Exempt	Section 10(17A)
Arjuna / Dronacharya Award	Exempt	Section 10(17A)
Prize from a private company / sponsor	Taxable	Slab / 115BBA
Prize from a non-approved sports body	Taxable	Slab / 115BBA

The exemption is limited to awards from the Government or a Central-Government-approved body. Commercial prizes and sponsorships stay taxable.

TaxClue Insight — awards vs endorsements

A government cash reward for an Olympic medal is exempt under 10(17A), but the endorsement and sponsorship deals that usually follow a medal are fully taxable professional/business income. Keep the two clearly separated in your books and your ITR.

Resident cricketers

IPL & BCCI Income — Fully Taxable at Slab Rates

For a resident cricketer there is no concessional regime. BCCI retainer, match fees, the IPL franchise contract, performance bonuses and endorsement income are aggregated and taxed at normal slab rates — top earners land in the 30% bracket plus surcharge. Professional fees (not salary) allow a deduction of genuine expenses under the business/profession head.

Choose wisely

Old vs New Regime for a Sportsperson

From AY 2026-27 the new regime is the default. It has wider slabs and a Section 87A rebate that makes tax NIL up to Rs12,00,000 of taxable income, but almost no deductions. The old regime keeps 80C/80D and other Chapter VI-A benefits. Compare with our old vs new regime calculator.

New

New regime — default

Slabs: Nil to Rs4L, then 5/10/15/20/25/30%
Rebate makes tax NIL up to Rs12L taxable
Standard deduction Rs75,000 on salary
Surcharge capped at 25%
No 80C / 80D / most deductions

Old

Old regime — optional

Slabs: Nil to Rs2.5L, then 5/20/30%
Rebate up to Rs5L taxable (87A)
Standard deduction Rs50,000 on salary
80C, 80D, home-loan interest etc.
Better only if deductions are large

Non-resident player — Rs50,00,000 India income

Gross receiptsRs50,00,000

Deductions allowedNil

Tax @ 20% (Sec 115BBA)Rs10,00,000

+ surcharge & 4% cess~Rs10.4L

Resident player — Rs50,00,000 (new regime)

Taxable incomeRs50,00,000

Tax on slabs~Rs11,90,000

Surcharge (10%) + cessadded

Effective tax~Rs13.6L

Figures are illustrative and ignore individual deductions and DTAA relief. Use the income tax calculator for your own numbers.

Determine residential status first
Classify each income stream correctly
Separate exempt Govt awards (10(17A))
Reconcile TDS (194E / salary / 194J)
Claim only available deductions
Report foreign income if resident
File the correct ITR form on time

Sportsperson with mixed prize, salary and endorsement income? We'll file it right.

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Government sourcesAct & rates: incometax.gov.in · Section 115BBA — tax on non-resident sportsmen / associations (flat 20%) · Section 194E — TDS at 20% on payments to non-resident sportsmen · Section 10(17A) — exemption for Government awards & rewards

Frequently Asked Questions

Basics & Prize Money

How is a sportsperson taxed in India?

It depends on residential status. A resident sportsperson is taxed at normal slab rates on all income — match fees, prize money, IPL/BCCI pay and endorsements. A non-resident sportsperson is taxed at a flat 20% on India-source income from participation, advertisements and sport articles under Section 115BBA, with no deductions. Cash awards from the Central or State Government are exempt under Section 10(17A).

Is prize money won by sportspersons taxable in India?

Yes, in most cases. For a resident, prize money from private tournaments, franchises or international bodies is taxable at slab rates and reported in the ITR. The exception is a cash prize or award received from the Central or State Government for a notable sporting performance, which is exempt under Section 10(17A). Prize money from a non-approved private body remains taxable.

Which ITR form should a sportsperson file?

A salaried sportsperson with simple income can often use ITR-1 or ITR-2. A sportsperson earning professional or business income (endorsements, appearance fees billed as fees) generally files ITR-3, or ITR-4 if opting for presumptive taxation and eligible. The correct form depends on the income mix and residential status.

Do sportspersons get any special tax rate in India?

Resident sportspersons get no special or concessional rate — they are taxed at normal slab rates like any other individual. The only special regime is Section 115BBA, which applies to non-resident sportsmen and taxes their India income at a flat 20%.

Section 115BBA (Non-Resident)

What is Section 115BBA?

Section 115BBA taxes non-resident sportsmen, non-resident sports associations or institutions, and non-resident entertainers at a flat 20% on gross India income from participation in games or sports in India, advertisements, and contribution of articles relating to any game or sport in India. No deductions, no Chapter VI-A benefits and no basic exemption limit are allowed; surcharge and 4% cess apply on top.

Is the 115BBA tax rate 20% on gross or net income?

On gross. The 20% under Section 115BBA is charged on the gross specified receipts before any deduction for expenses or Chapter VI-A relief. This is why the effective burden can be simple to compute but leaves no room to reduce it through expenses.

What TDS applies to payments to non-resident sportsmen?

Section 194E requires the payer (BCCI, IPL franchise or event organiser) to deduct TDS at 20% — plus surcharge if applicable and 4% Health & Education Cess — on payments to a non-resident sportsman or sports association, at the time of credit or payment, whichever is earlier.

Does a non-resident sportsperson have to file an ITR in India?

Often not, where the entire India income is covered by Section 115BBA and TDS under Section 194E has been correctly deducted at 20% — that TDS discharges the liability. If there is other India income, or the sportsperson wants to claim DTAA relief or a refund, a return may still be required.

Awards & Exemptions

Are Olympic medallists exempt from income tax on their prize money?

Yes, on the government portion. Cash prizes or awards received from the Central or State Government in recognition of Olympic, Paralympic, Commonwealth or Asian Games performance are exempt under Section 10(17A). When a state announced a large cash reward for an Olympic gold medallist, that amount was exempt. Commercial sponsorships and endorsements that follow remain fully taxable.

What does Section 10(17A) exempt for sportspersons?

Section 10(17A) exempts any award instituted in the public interest by the Central or State Government, or a payment approved by the Central Government. For sportspersons this covers the Major Dhyan Chand Khel Ratna, Arjuna and Dronacharya awards and government cash rewards to medallists. Awards from private companies or non-approved bodies are not covered and stay taxable.

What happened to Section 80RR for sportspersons?

Section 80RR historically gave resident sportspersons, authors and artists a deduction of up to 50% of income earned in foreign exchange from activities abroad. It was withdrawn and is not available for income from AY 2004-05 onwards. Sportspersons should not claim it; resident sportspersons are taxed on global income at slab rates, subject to DTAA relief.

IPL, BCCI & Residents

How is a cricketer's IPL salary or BCCI contract taxed?

For a resident cricketer, IPL franchise salary, BCCI central-contract fees, match fees, performance bonuses, prize money (non-government) and endorsement income are all taxable at normal slab rates — there is no concessional regime. High earners fall in the 30% bracket plus surcharge. Where income is billed as professional fees, genuine professional expenses are deductible before arriving at taxable income.

How is a foreign IPL player taxed in India?

A non-resident overseas player is taxed under Section 115BBA at a flat 20% on his India income — franchise fees, match fees and India-linked endorsements — with TDS deducted at 20% under Section 194E. A DTAA between India and the player's home country may modify how that income is taxed or credited.

Is endorsement and sponsorship income taxable for sportspersons?

Yes. Brand endorsements, sponsorships and advertisement income are fully taxable — as business or professional income for a resident at slab rates, and under Section 115BBA at 20% for a non-resident where the advertisement is connected with an event in India. Only government awards under 10(17A) are exempt.

Should a sportsperson choose the old or new tax regime?

From AY 2026-27 the new regime is default, with wider slabs and a Section 87A rebate that makes tax nil up to Rs12,00,000 taxable income, but almost no deductions. The old regime keeps 80C, 80D and other benefits. A sportsperson with large deductions (home-loan interest, high 80C) may still gain from the old regime; most others are better off in the new one. Compare both before filing.

Is foreign prize money from playing abroad taxable in India?

For a resident, yes — India taxes global income, so prize money and fees earned abroad are taxable here at slab rates, with credit for foreign tax under the relevant DTAA. A non-resident is taxed in India only on India-source income; foreign earnings are outside the Indian net.

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Related TaxClue Services

ITR FilingEnd-to-end return filing for mixed sports, salary and endorsement income.Explore →Income Tax CalculatorEstimate your AY 2026-27 tax under both regimes in minutes.Explore →NRI & Non-Resident Tax115BBA, 194E TDS and DTAA relief for non-resident sportspersons.Explore →Old vs New RegimeSee which regime saves you more before you file.Explore →

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TaxClue for sportspersons

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