Tax on Cricketer's Income in India — Explained

India's most popular sport is cricket, which originated in England. Its crores of followers consider it as a religion. Cricketers' income increased to crores of rupees due to its popularity. Discover Cricketers India's income streams and taxes.

This document covers

Background
Cricketers Income Sources & Income Tax
Payments to Non-Resident Cricketers or Cricket Associations

1. Background

The most popular sport in India is cricket. Its crores of followers consider it as a religion. India's first Test match was in 1932, but victories like Kapil Dev's 1983 ICC Cricket World Cup (ODI), MS Dhoni's 2007 T20, and Dhoni's 2011 ODI made the sport popular.

More recently, the Champions Trophy 2025 expanded it's popularity when Indian captain Rohit Sharma defeated New Zealand by four wickets in the Champions Trophy final in Dubai on March 9, 2025.

Cricket is Rs. 30,000 crore industry, and cricketers earn plenty of money from match fees, prizes, ads, gifts, IPL payments, & influence. Income tax on Cricketer's income is the same for both males and women.

2. Cricketers Income Sources & Income Tax

2a. Match Fees

Match fees can be received from BCCI, State cricket associations and other cricket boards.
The taxation of match fees received by a cricketer depends on residential status. If a cricketer is resident, he needs to pay tax on the global income (matches played in foreign countries). If the cricketer is NRI, he is required to pay taxes only on the income received in India.
As cricket is a professional game, the match fees received by cricketers is considered as a professional income and taxed under "Income from Business / Profession"
It is taxable as per applicable slab rates of individual.
TDS @ 10% will be deducted by BCCI u/s 194J.
GST @ 18% is applicable on the professional income except on Govt matches.

Example:

If Virat Kohli receives a match fee of Rs 1 crore for Indian vs Pakistan match, the BCCI will deduct TDS @ 10% u/s 194J

2b. Prize Money & Awards

The prize monies received for man of the match or tournament winning prize is taxable under the head "Income from other sources"
The cricketer is required to pay tax @ 30% as it is considered as winnings
TDS will be deducted @ 30% by payers
However, Government awards like arjuna award and any other Government awards is exempt u/s 10(17A).

Example:

If Rohith Sharma receives man of the match awards and receives Rs 1 lakhs as prize money, TDS @ 3% will be deducted and Rohith Sharma is also required to pay tax @ 30%.

2c. Advertisements

Income received through advertisements on TV’s, product endorsements, social media promotions etc are taxable under the head "Income from Business / Profession" and it is taxable at applicable slab rates of individual
TDS @ 10% will be deducted by the payer’s u/s 194J.
The cricketer is required to pay GST @ 18% on advertisement services.

Example:

If MS Dhoni is advertising for a product called Boost, the company needs to deduct TDS @ 30% and MS Dhoni is required to show this income under the head Income from business /profession and pay tax at applicable slab rates.

2d. Amounts received from IPL and other private leagues

Income received from IPL (Indian Premier League) and any other private leagues in the form of auction fees, signing bonus, retention money is taxable under the head "Income from Business / Profession" and taxable at applicable slab rates of individual.
TDS @ 10% will be deducted by the Franchisee’s u/s 194J
The cricketers are required to pay GST @ 18% on the amounts received

2e. Amounts received from Overseas League Income

Incomes received by cricketers from overseas leagues like Big Bash League (BBL-Australia), Caribbean Premier League(CPL-West Indies), Pakistan Super League (PSL- Pakistan) are taxable under the head "Income from Business / Profession".
The taxes deducted in foreign countries can be claimed as foreign tax credit u/s 90/90A in India

2f. Gifts Received by Cricketers

Gifts received by cricketers from fans/public is taxable under the head "Income from Other Sources"
Gifts received by cricketers from franchisee/corporates are taxable under the head “Income from business/profession.

2g. Coaching, Commentary, and Hosting Shows

Income received for post-retirement activities such as coaching, commentary, or hosting TV shows are taxable under the head "Income from business / profession"
The cricketers are required to pay GST @ 18%, and the payers will deduct TDS @ 10%

2h. Priceless

What is priceless is their INFLUENCE in today's society.

Although we cannot quantify the impact of contemporary cricketers on our society, it is undeniably significant. Furthermore, several former cricketers do not hesitate to engage in politics, in addition to their roles as socio-economic influencers.

Today, India's top cricketers can quickly secure the appointment of the Prime Minister of India. That demonstrates their influence, and influence to earn money.

3. Payments to Non-Resident Cricketers or Cricket Associations

The Non Resident Cricketers are required to pay the taxes and file their tax returns in home countries depending on residential status.
The Indian Board (BCCI) or IPL needs to deduct TDS @ 20% on the payments made to Non Resident Cricketers or Cricket Associations.
Foreign players can claim DTAA relief under if India has a treaty with their home country.
Reverse Charge Mechanism (RCM) applies at 18% if the service is provided in India
Form 15CA/15CBis applicable if the foreign players wants to remit the money abroad.

Example:

If David Warner is playing in IPL for a remuneration of Rs 5 crore, the franchise is required to deduct TDS @ 20% on his payment