(This is an old case law, but we thought it deserved a comeback—just like Sachin’s straight drive! )
If you think Sachin Tendulkar is only a cricketer, think again! In a hilarious and fascinating tax case, the Income Tax Appellate Tribunal (ITAT) ruled that Sachin is an artist, not just a sportsman. And guess what? This ruling helped him score big tax deductions!
But wait—doesn’t Section 80RR already cover sportsmen? So why did Sachin have to prove he was an artist instead? Let’s dive into this legendary tax match!
What Was the Case About?
During the assessment years 2001-02 and 2004-05, Sachin earned a whopping ₹5.92 crore from endorsements with brands like Pepsi, ESPN, and Visa. Being the master strategist he is, he claimed tax deductions under Section 80RR of the Income Tax Act, which allows:
Authors
Playwrights
Artists
Musicians
Actors
Sportsmen earning foreign income
Sounds simple, right? Sachin is a sportsman, and “sportsmen” are clearly covered under the section. So why was there even a debate?
The Tax Department’s Bouncer
The Assessing Officer (AO) rejected Sachin’s claim, saying:
- The earnings were NOT from playing cricket internationally (which would qualify for sportsman deduction).
- The money came from brand endorsements, which wasn’t covered under the “sportsmen” category.
- Just because you’re good at cricket doesn’t mean you automatically qualify for deductions on ad money!
The Commissioner of Income Tax (Appeals) [CIT(A)] agreed, adding:
Sachin was getting paid for his face, not his game.
He wasn’t running between the wickets in these ads—he was acting!
So, they said, “Sorry, Master Blaster, your brand deals don’t count as sports earnings!“
Enter ITAT: “Sachin, You Are an Artist!”
Not one to give up, Sachin appealed to the ITAT, and here’s where things got fun! ITAT ruled that:
Sachin wasn’t just standing in ads; he was performing.
Acting in front of lights and cameras requires skill—just like a professional actor.
Not every cricketer can act (and we’ve all seen some cringeworthy cricketer ads to prove this!).
With this, ITAT declared: Sachin is an artist, and he could claim the tax deductions!
Why This Case is a Masterstroke in Tax Planning
This case highlights a crucial tax strategy:
Different types of income are taxed differently – Even if you are a cricketer, only income directly from cricket qualifies under the “sportsmen” category.
Creative arguments can save tax – Sachin flipped the script and turned brand endorsements into artistic income for tax benefits!
Multiple professions = multiple tax angles – If you have earnings from different sources, the right tax planning can help optimize deductions.
The Final Score: Sachin Wins Again!
The ITAT ruling in favor of Sachin set a unique tax precedent. Even though this case is old, it reminds us that tax laws can be interpreted creatively—if you have the right argument!
Moral of the Story:
- Sachin doesn’t just smash sixes—he also scores tax deductions like a pro.
- If you’ve ever acted in front of a camera (or even taken 100 selfies for the perfect one), congratulations! You might be an artist too.
- The next time you file taxes, ask yourself: Am I just an employee, or am I also a hidden artist?
So, while Sachin might have retired from cricket, his legacy in tax law lives on!
Stox N Tax 
Leave a comment