Income Tax for Sportsperson 2026 — Section 115BBA, Prize Money & IPL Tax Rules

Updated: 3 June 2026 | Income Tax Act 1961 | Section 115BBA, 10(17A) | AY 2026-27

Tax rules for sportspersons: Resident sportspersons — taxed at normal slab rates on all income (salary, prize money, endorsements, IPL/BCCI income). Non-resident sportspersons — flat 20% tax under Section 115BBA on income from sports participation, advertisements, and articles in India. Government sports awards / Olympic prize money — exempt under Section 10(17A). Section 80RR (foreign exchange deduction) — discontinued since AY 2004-05, not available.

20% Flat

Non-resident sportspersons taxed at 20% flat (Section 115BBA) — no deductions allowed
TDS deducted at source by payer (BCCI, tournament organiser). Resident sportspersons: normal slab rate.

Tax Summary for Sportspersons — Income Type Table

Income Type	Resident Sportsperson	Non-Resident Sportsperson	Relevant Section
Prize money from tournament	Slab rate (income from other sources)	20% flat (Sec 115BBA)	Sec 115BBA / Slab
BCCI central contract / match fees	Slab rate	20% flat	Sec 115BBA / Slab
IPL franchise salary	Slab rate	20% flat	Sec 115BBA / Slab
Brand endorsement / advertisement	Slab rate (business/professional income)	20% flat (Sec 115BBA)	Sec 115BBA / Slab
Olympic prize money (from Central/State Govt)	Exempt (Sec 10(17A))	Exempt (Sec 10(17A))	Sec 10(17A)
Khel Ratna / Arjuna Award (Govt)	Exempt (Sec 10(17A))	Exempt (Sec 10(17A))	Sec 10(17A)
Prize from private body (non-govt)	Slab rate	20% flat	Slab / Sec 115BBA
Foreign income (playing abroad)	Slab rate (global income)	Only India-sourced income taxed	DTAA may apply
Sec 80RR deduction (foreign exchange)	Not available (withdrawn)	Not applicable	Withdrawn

Section 115BBA — Non-Resident Sportspersons Explained

Section 115BBA of the Income Tax Act, 1961 creates a special tax regime for non-resident sportspersons and sports institutions. It applies when a non-resident individual — such as a foreign cricket player coming to play in the IPL, or an international golfer competing in an India Open — earns income from India specifically from:

(a) Participation in any game or sport in India (match fees, prize money, appearance fees).
(b) Advertisement — for endorsing products or services while in India or in connection with any event in India.
(c) Contribution of articles relating to any game or sport in India in newspapers, magazines, journals.

The tax rate under Section 115BBA is 20% on the gross income (before any deductions). No deduction for expenses, no Chapter VI-A benefits (80C, 80D etc.), and no basic exemption limit is available. Surcharge and Health & Education Cess apply additionally. The payer (BCCI, IPL franchise, event organiser) must deduct TDS at 20% before remitting payment.

Section 10(17A) — Exemption for Government Sports Awards

Under Section 10(17A) of the Income Tax Act, any payment received in pursuance of any award instituted in the public interest by the Central Government or a State Government — or by any other body approved by the Central Government in this behalf — is fully exempt from income tax.

This covers: Padma Bhushan, Padma Vibhushan, Padma Shri (for sports achievement), Arjuna Award, Khel Ratna (Major Dhyan Chand Khel Ratna), Dronacharya Award, as well as cash prizes announced by Central or State governments for Olympic, Paralympic, Commonwealth Games, or Asian Games medallists. When states like Haryana or Maharashtra announce ₹6 crore for an Olympic gold medallist, that cash award is exempt under Section 10(17A). Note that the exemption applies only to awards from government or government-approved bodies — private company awards or cash prizes from non-approved sporting bodies remain taxable.

Tax Treatment of IPL & BCCI Income for Resident Cricketers

For Indian resident cricketers, all IPL and BCCI income is fully taxable at normal slab rates. There is no special concessional regime for resident sportspersons. Income sources include: BCCI annual contract retainer, match fees from domestic and international matches, IPL franchise contract (sold in the auction), performance bonuses, and endorsement income. The total income from all these sources is aggregated and taxed at the applicable slab rate — 30% for income above ₹10 lakh (new regime: 30% above ₹15 lakh).

Top cricketers like Virat Kohli and Rohit Sharma, earning several crore rupees annually, are in the highest bracket and also pay applicable surcharge. Standard deductions available include Section 80C (₹1.5 lakh), 80D (health insurance), and 80GG (rent if no HRA). Cricketers who receive income as professional fees (not salary) can deduct legitimate professional expenses under Section 37 before arriving at taxable income.

Frequently Asked Questions

Is prize money won by sportspersons taxable in India?

Yes, prize money won by sportspersons is generally taxable in India. For resident sportspersons, prize money is taxed as income from other sources at normal slab rates. However, prize money or cash awards received from the Central Government or a State Government specifically as a reward for notable performance in sports is exempt from income tax under Section 10(17A) of the Income Tax Act. This exemption applies to officially declared government awards. Prize money from BCCI, private tournaments, IPL contracts, or international bodies (if received by resident individuals) is taxable at normal slab rates and must be reported in the ITR.

What is Section 115BBA — tax on non-resident sportspersons?

Section 115BBA of the Income Tax Act applies to non-resident sportspersons (including non-resident sports associations or institutions). Under this section, the following income earned by a non-resident sportsperson from India is taxed at a flat rate of 20% (plus applicable surcharge and cess), without allowing any deductions or expenditure: (1) income from participation in any game or sport in India; (2) income from advertisement; (3) income from contribution of articles relating to any game or sport in India. This flat 20% rate applies at the gross income level — no Chapter VI-A deductions (like 80C, 80D) are available. TDS is deducted at 20% by the payer (e.g., BCCI, event organiser).

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

Yes. Indian sportspersons who receive cash prizes or awards from the Central Government or a State Government in recognition of their performance at the Olympics or other sporting events are exempt from income tax under Section 10(17A) of the Income Tax Act. The exemption covers: (a) any payment from the Central or State Government, (b) any payment from a university or other educational institution approved by the government, (c) any payment from a recognised sports body. So, when the Indian government announced cash awards for Olympic medallists (e.g., ₹6 crore for Neeraj Chopra's gold medal at Tokyo 2020), those amounts were exempt under Section 10(17A). However, commercial sponsorships and endorsements remain fully taxable.

What is Section 80RR — deduction for sportspersons earning in foreign exchange?

Section 80RR of the Income Tax Act historically provided a deduction to resident individuals (including sportspersons, authors, artists) who earned income in foreign exchange from activities outside India — such as playing in foreign leagues, winning international prize money, or advertising contracts paid in foreign currency. The deduction was available up to 50% of the income brought into India in foreign exchange through approved banking channels. However, Section 80RR was withdrawn/discontinued and is no longer available for income earned from AY 2004-05 onwards. Sportspersons should note this section is not currently applicable and should not claim it. Resident sportspersons earning abroad are taxed on their global income at normal slab rates.

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

Indian cricketers playing in the IPL or under BCCI contracts are resident individuals taxed at normal income tax slab rates on all their earnings including: BCCI central contract fees, IPL franchise salary, match fees, prize money (non-government), brand endorsements and sponsorships, and media/advertisement income. There is no concessional tax rate for resident professional sportspersons in India. High-earning cricketers typically fall in the 30% tax bracket. Income from foreign leagues (e.g., overseas T20 leagues) is taxable in India if the cricketer is a tax resident. Legitimate deductions under Section 80C (up to ₹1.5 lakh), 80D, and other applicable provisions can be claimed. Sportspersons should obtain a TAN and ensure TDS compliance if they employ staff.

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