Higher TDS for Sportsmen

SPORTSMEN of Indian Premier League (IPL) heroes may now have to cough up a higher tax at source (TDS). The Central Board of Direct Taxes (CBDT) is examining a proposal by which sportsmen would have to pay a 10% tax at source as against 1-2% at present. The move, which comes close on the heels of IPL, could lead to a higher tax outgo when sportspersons—players, commentators, umpires etc—receive payments. CBDT is also expanding the scope of professionals defined under Section 44 AA of the Income Tax Act, 1961. At present, only legal, medical, engineering and architectural professionals, or those in accountancy, technical consultancy and interior decoration are covered under the provision of the Act. This would also require sportspersons to maintain books of accounts. Sources said at present sportspersons are covered under Section 194C of the Income Tax Act, which makes them eligible for a lower tax deduction of 1-2% at source. But now the board plans to bring them under Section 194J of the Act, which covers professionals. As per Section 194J of the Income Tax Act, 1961, if the fee for professional or technical service contracts undertaken by any of these professionals is more than Rs 20,000, the contract awardee has to deduct tax at the rate of 10%. The government had increased the rate of deduction from 5% to 10% in Budget 2007-08. The government is paying special attention to the expansion of the TDS net as it is a neat way of collecting tax. TDS collections grew over 50% to Rs 1,06,700 crore in 2007-08 from just 2.36% in 2004-05.

A Billion $ Opportunity in Sports Law- Are You Ready?

In the very first season, Mumbai Indians was the most expensive team, bought for $111.9 million. Vijay Mallya’s Royal Challengers was bought for $111.6 million. Shah Rukh Khan, Juhi Chawla and Jay Mehta had bid for the Kolkata team for $75.09 million, while GMR Holdings had bought the Delhi Daredevils for $84 million. Finalist India Cements-owned Chennai Super Kings was bought for $91 million, while winner Rajasthan Royals was bought for the lowest $67 million. Decccan Chronicle had acquired the Hyderabad team for $107.01 million.

As a huge amount of money is investing in Sports legal services specialized for the sports sector will be required.

For more information on this Click Here

Sports Business Law Group

With the advent of Indian Premier League (IPL), Indian Cricket League (ICL), Premier Hockey League (PHL), Formula 1 and Commonwealth Games 2010 in India the sports sector has emerged as one of the most booming and potential area of practice for the law firms in coming times. At present in India the sports sector is riding on huge money at stakes and drawing athletes and other sports players, media, sports association, leagues etc from all over the world. Sports has become over a billion dollar industry now in India. It is envisioned that very shortly specialized legal skill of international quality and standard in this sector will be required.

The consumer of such legal services will be International players, athletes, Media & Event managemet companies, Sponcers, Broadcasters, Sports Leagues, Clubs and Associations etc.
The object of this blog is to bring together national and international professionals from all fields of life who are interested in promoting true spirit of sports through Law.