Indian Income Tax | Sports Event Exemptions
Section 10(39) Income Tax Exemption for International Sporting Events
Section 10(39) of the Income-tax Act, 1961 concerns a targeted exemption for specified income arising from an international sporting event. It applies only where the Central Government has notified the relevant person and sporting event and the legal conditions are satisfied.
Meaning of Section 10(39)
Section 10(39) excludes from total income any specified income arising from an international sporting event held in India to a person notified by the Central Government in the Official Gazette, provided the statutory requirements are met. The provision is event-specific and notification-dependent, rather than a general exemption for sports earnings.
Eligible assessee, income and exemption amount
| Eligible assessee | A person specifically notified by the Central Government for the relevant international sporting event. |
|---|---|
| Nature of income | Specified income arising from the qualifying international sporting event held in India. |
| Amount exempt | The income covered by the applicable notification and statutory provision; there is no general exemption for all sports-related receipts. |
| Applicable provision | Section 10(39) of the Income-tax Act, 1961, for periods governed by that Act. |
Conditions for exemption under Section 10(39)
- International sporting event: The income must arise from an international sporting event held in India.
- International approval: The event must be approved by the international body regulating the international sport concerned.
- Participation threshold: More than two countries must participate in the event.
- Central Government notification: The Central Government must notify the sporting event in the Official Gazette.
- Notified person and specified income: The claimant must be a person notified for this purpose, and the income must fall within the scope of the exemption.
What counts as an international sporting event?
For this exemption, the expression must be read with the requirements of Section 10(39). A competition marketed as international does not qualify merely because foreign participants are present. Regulatory approval, participation by more than two countries, a notified event and an eligible notified person are material to the claim.
Which sports receipts are not automatically exempt?
Prize money, sponsorship fees, broadcasting receipts, appearance fees, ticketing revenue, consultancy payments and other event-related receipts are not exempt merely because they relate to sport. Their tax treatment depends on the recipient, the nature of the receipt, the relevant government notification and other applicable income-tax provisions.
Illustrative example
Suppose an international sports federation receives income from an event held in India with participants from several countries. Even where the sport's international regulator approves the event, the federation should verify whether the Central Government has notified both the event and the relevant person, and whether the particular income is specified. Without these requirements, a claim under Section 10(39) cannot be assumed.
Documents to verify before claiming exemption
- Official Gazette notification identifying the international sporting event.
- Notification covering the person claiming the exemption and the specified income.
- Evidence of approval by the international body regulating the sport.
- Records establishing participation by more than two countries.
- Income statements and supporting documents identifying event-related receipts.
Tax-law position from 1 April 2026
The Income-tax Act, 2025 took effect from 1 April 2026. Section 10(39) refers to the Income-tax Act, 1961 and remains relevant for tax periods governed by that Act. For tax years governed by the 2025 Act, refer to the corresponding exemption provisions, applicable notifications and transition rules rather than assuming the old section numbering continues.
Official legal sources and related guidance
- Income Tax Department: legislation and notifications
- India Code: central laws and amendments
- e-Gazette of India: official notifications
- Income Tax Department: e-Filing portal
- Guide to tax-exempt income
- Section 10 exemption overview
Frequently asked questions
What is Section 10(39) of the Income-tax Act, 1961?
It provides exemption for specified income arising from a notified international sporting event to a person notified by the Central Government, subject to statutory conditions.
Are all earnings from international sporting events exempt?
No. Only income of the specified nature, earned by an eligible notified person, in connection with a qualifying notified event is covered.
How many countries must participate in the sporting event?
The event must have participation by more than two countries, alongside other statutory and notification requirements.
Is approval by an international sports regulator sufficient?
No. The event must also meet the other conditions and be notified by the Central Government; the person and income must fall within the relevant notification.
Can an athlete automatically claim Section 10(39)?
No. Participation or prize money alone does not establish eligibility. The specific government notifications and nature of the income must be examined.
Does Section 10(39) apply to tax years after April 2026?
Section 10(39) is a provision of the Income-tax Act, 1961. For tax years governed by the Income-tax Act, 2025, check the corresponding provisions and transition rules.
This article provides general information. Verify the applicable notification and law for the relevant tax year before claiming exemption.