Tax exemption for Olympics, CWG and Asian Games winners
CBDT issued order that exempts medal winning sportsperson at Olympics, Commonwealth and Asian Games from payment of Income Tax on cash rewards.
Central Board of Direct Taxes (CBDT) on 28 January 2014 issued an order that exempts Indian sportsperson, who won medals at Olympics, Commonwealth Games (CWG) and Asian Games from payment of Income Tax on cash or other rewards given by the government. The order came into effect from the date of its notification.
Till now, medal-winning sportspersons, who received any cash prize or gift from the government were supposed to pay income tax to the government. While, achievers from other fields except sports like winners of National Film Awards and Ramon Magsaysay awardees were exempted from paying any income tax till now.
To exempt the sportsperson from the tax payment for the rewards given by the central or state government, CBDT invoked the provisions mentioned under Clause (17A) of Section 10 of the Income Tax Act 1961 (43 of 1961). Till the notification from the CBDT, the medal-winning sportspersons who received cash prize of gift by the government used to come under the bracket of payment of Income Tax.