A field experiment was conducted during kharif, 2012 at ARS, Gangavathi, UAS, Raichur to study the effect ofdifferent sources and levels of sulphur on growth and yield of irrigated transplanted rice (Oryza sativa L.). The resultsrevealed that application of sulphur in the form of gypsum recorded better yield parameters such as panicles per m2(322),number of filled grains per panicle (107.5), grain filling percentage (87.8) and test weight (15.1 g) and resulted insignificantly higher grain yield (4752 kg ha-1).Gypsum application also recorded higher uptake of nitrogen (132.9 kg ha-1),phosphorus (32.6 kg ha-1), potassium (98.2 kg ha-1) and sulphur (24.1 kg ha-1). The gross returns (`.80681 ha-1), net returns(` 46426 ha-1) and B:C ratio (2.35) were also higher over other sources. Among the different levels, application of sulphur@ 40 kg ha-1 recorded significantly higher grain yield (4914 kg ha-1) and better yield parameters and resulted in higher netreturns(` 48389 ha-1 ) and BC ratio(2.38).