Finance Buddy

Nearly a decade ago, at the peak of his advertising popularity, Indian men's team cricketing legend   Sachin Tendulkar   used Section 80RR to save   ₹ 58 lakh in taxes on income earned from abroad. More recently, TaxBuddy founder Sujit Bangar took to the social media platform X (formerly Twitter) to explain how the Master Blaster's tax strategy worked. Bangar, in multiple posts, explained how Sachin Tendulkar was able to claim the   tax deduction   by separating his income into earnings from two professions. What Happened? As per multiple media reports, in tax filings for AY2001–02 and AY2004–05, Sachin Tendulkar claimed a 30%   deduction   under Section 80RR on   ₹ 5.92 crore of earnings from abroad, and defended against a tax demand from the authorities on the same. As per Bangar, the cricketing legend earned  foreign income  of around  ₹ 5.92 crore (in forex) for which he claimed a 30% tax deduction under Section 80RR, which amo...

A fascinating chapter from Sachin Tendulkar’s financial playbook, one where the cricket legend turned “actor” to save Rs 58 lakh in income tax , could be an example for many professionals and freelancers in the creative fields. In a recent post on X (formerly Twitter), Sujit Bangar, founder of Taxbuddy.com, narrated how the iconic cricketer saved lakhs in taxes with a smart trick. “Sachin Tendulkar wasn’t a ‘cricketer.’ He claimed he was an actor, to save Rs 58 lakh in taxes,” Bangar wrote. According to Bangar, the issue dates back to the financial year 2002-03, when Tendulkar earned Rs 5.92 crore in foreign income from endorsements for brands like Pepsi, Visa and ESPN. Instead of declaring this under his income as a cricketer, Tendulkar classified the earnings as part of his “actor” profession and claimed a 30% deduction under Section 80RR of the Income Tax Act, 1961. Section 80RR is meant for authors, playwrights, artists (actors, musicians and sportsmen) and other performe...