Taxes Using Section 80RR:

Indian cricket icon Sachin Tendulkar, known for his incredible records on the field, also made headlines for his intelligent financial planning. Nearly a decade ago, Sachin used Section 80RR of the Income Tax Act to save about ₹58 lakh in taxes on his foreign earnings.

Taxes Using Section 80RR

According to TaxBuddy founder Sujit Bangar, Sachin earned around ₹5.92 crore from foreign advertisements for brands like Pepsi, VISA, and ESPN-Star Sports during the years 2001–02 and 2004–05. Under Section 80RR, artists such as actors and musicians can claim a 30% deduction on income earned abroad. Sachin cleverly used this rule, classifying part of his income as “acting” income from advertisements rather than “cricketing” income.

The Income Tax Department, however, disagreed and imposed a penalty, arguing that endorsements were part of his cricket fame and should be treated as “other income.” Tendulkar defended his case, saying that his advertisement work involved acting and performance, qualifying him as an “artist” under the law.

When the matter reached the Income Tax Appellate Tribunal (ITAT), it ruled in Sachin’s favor. The tribunal noted that acting and modeling require “skill, imagination, and creativity,” and thus count as artistic professions. It also clarified that a person can have more than one profession—in Sachin’s case, both as a cricketer and an actor.

With this ruling, Tendulkar successfully claimed a ₹1.77 crore deduction, resulting in ₹58 lakh in tax savings.

This case remains an example of how understanding tax laws can lead to major financial benefits. It also highlights the importance of classifying income correctly and exploring all available deductions.

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