Tax on Cricketer's Income in India — Explained

This document covers

1. Background
2. Cricketers Income Sources & Income Tax
   
   
   1. Match Fees
   2. Prize Money & Awards
   3. Advertisements
   4. Amounts received from IPL and other private leagues
   5. Amounts received from Overseas League Income
   6. Gifts Received by Cricketers
   7. Coaching, Commentary, and Hosting Shows
   8. Priceless
   
   
3. 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.

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).

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.

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.