+
    we-women-want
  • HOME»
  • Do Olympic Medalists Pay Taxes On Gifts And Rewards?

Do Olympic Medalists Pay Taxes On Gifts And Rewards?

As the Paris 2024 Olympics come to a close, Indian athletes have earned significant accolades: Neeraj Chopra secured a silver medal, while Manu Bhaker, Sarabjot Singh, Swapnil Kusale, and Aman Sehrawat each won bronze. These athletes are being celebrated with substantial cash rewards and gifts from both the government and various industrialists. A key question […]

Do Olympic Medalists Pay Taxes?
Do Olympic Medalists Pay Taxes?

As the Paris 2024 Olympics come to a close, Indian athletes have earned significant accolades: Neeraj Chopra secured a silver medal, while Manu Bhaker, Sarabjot Singh, Swapnil Kusale, and Aman Sehrawat each won bronze. These athletes are being celebrated with substantial cash rewards and gifts from both the government and various industrialists. A key question arises: are these rewards subject to taxation?

In France, where the medalists receive ₹80,000 for gold, ₹40,000 for silver, and ₹20,000 for bronze from the government, the cash awards are subject to tax withholding. However, in India, such rewards from the government are tax-exempt. According to Section 10(17A) of the Income-Tax Act, rewards provided by central or state governments to medalists of the Olympics, Commonwealth Games, or Asian Games are not taxable.

For instance, Manu Bhaker, who won two medals, and Sarabjot Singh, who was awarded ₹30 lakh and ₹22.5 lakh respectively, are likely to benefit from this tax exemption. Similarly, rewards given to the Indian hockey team by the Punjab and Odisha state governments will also be exempt from taxes.

In contrast, the United States previously taxed its medal winners based on the value of their medals and rewards. However, starting in 2026, US athletes will only face taxation on these rewards if their annual income exceeds $1 million.

When it comes to gifts rather than cash, the taxation rules differ. While a medal itself is not considered jewellery like a gold chain or necklace, Section 56(2)(x) of the Income-Tax Act states that movable property, if received without consideration and its aggregate value exceeds ₹50,000, is taxable. This includes items such as land, buildings, shares, securities, and jewellery. Since medals are not explicitly mentioned, they are not subject to this taxation rule.

we-women-want
Advertisement