How Sachin Tendulkar, the cricketer, saved Rs 58 lakh income tax by calling himself an actor

Sachin Tendulkar, the man who made bowlers around the world tremble, was once stunned not on the field but in the courtroom. This was because the cricket legend convinced the tax officials that he was an actor and not a cricketer!

Yes, you read it right. The God of Cricket, who started playing international cricket since the age of 16 and was named the Wise Cricketer of the Year in 1997, also made a masterful move by changing his profession only on paper and saved Rs 58 lakh in taxes.

According to Sujit Bangar of Taxbuddy, in Financial Year 2002-03, Sachin earned around Rs 5.92 crore in forex from foreign advertisements of Pepsi, VISA and ESPN. Instead of treating it as “cricket income”, he claimed a 30% deduction (Rs 1.77 crore) under Section 80RR; this was a tax advantage for actors, writers and artists earning abroad.

In response, the Income Tax Assessing Officer sent a notice saying: “You are a cricketer; endorsements are incidental. Consider this under Other Sources; no 80RR.”

But Sachin, ever the calm strategist, did not take a hasty shot. He replied: “I have done modeling/acting. This is the profession of an actor, 80RR applies.”And the Income Tax Appellate Tribunal (ITAT) agreed! ITAT allowed entire 80RR claim (?1.77 Cr) in foreign endorsements; not cricket but artistic performance. The court said “acting” is not limited to Bollywood but also includes any creative performance involving skill, imagination and artistry. Modeling or acting in TV commercials is also important.

In short – one man, two professions: cricketer on the field, actor on the big screen.

Sachin’s case was solid. ITAT allowed full deduction of Rs 1.77 crore, recognizing that foreign endorsement income came from artistic performance and not from cricket.