Amendment of section 115BBA.
43. In section 115BBA of the Income-tax Act, with effect from the 1st day of April, 2013,—
(a) in sub-section (1),—
(i) in clause (b), the word “; or” shall be inserted at the end;
(ii) after clause (b), and before the words “the income-tax payable by the assessee”, the following clause shall be inserted, namely:—
“(c) being an entertainer, who is not a citizen of India and is a non-resident, includes any income received or receivable from his performance in India,”;
(iii) for the words, brackets and letters “clause (a) or clause (b)”, wherever they occur, the words, brackets and letters “clause (a) or clause (b) or clause (c)” shall respectively be substituted;
(iv) after the words “the income-tax payable by the assessee shall be the aggregate of—”, in clause (i), for the words “ten per cent.”, the words “twenty per cent.” shall be substituted;
(b) in sub-section (2), in clause (a), for the words, brackets and letters “clause (a) or clause (b)”, the words, brackets and letters “clause (a) or clause (b) or clause (c)” shall be substituted.
Notes on Clauses:
Clause 43 of the Bill seeks to amend section 115BBA of the Income-tax Act relating to tax on non-resident sportsmen or sports associations.
The existing provisions of section 115BBA provides for imposition of ten per cent. tax where the total income of an assessee being a sportsman (including an athlete) who is not citizen of India and is a non-resident, includes any income received or receivable by way of participation in India in any game (other than a game the winnings wherefrom are taxable under section 115BB) or sport or advertisement or contribution of articles relating to any game or sport in India in newspapers, magazines or journals or being a non-resident sports association or institution includes any amount guaranteed to be paid or payable to such associations or institutions in relation to any games (other than a game the winnings wherefrom are taxable under section 115BB) or sport played in India, the income-tax payable by the assessee on such income shall be the aggregate of the amount of income tax calculated on income at the rate of ten per cent.
It is proposed to insert a new clause (c) in sub-section (1) of the aforesaid section so as to include any income received or receivable by an entertainer, who is not a citizen of India and is a non-resident, from his performance in India and also to increase the tax on income referred to in this section from ten per cent. To twenty per cent.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
