look news india
BCCI earns a lot of money every year from the Indian Premier League. Apart from sponsorship, broadcasting and live streaming rights, IPL has many other sources of revenue. Recently a figure has come out that BCCI has made a profit of more than Rs 5 thousand crores from the 2023 season. This league has become one of the richest sports leagues in the world with earnings of thousands of crores. But have you ever wondered whether IPL is tax free? Is there no tax on this league?
Is there any tax on IPL?
The truth is that BCCI does not have to pay any tax on the thousands of crores of rupees it earns from IPL. In 2021, BCCI had demanded in its appeal that even though it is earning a lot of money through IPL, its objective of promoting cricket remains intact, so the league should be declared tax-free. The Income Tax Appellate Tribunal (ITAT) had allowed the appeal.
BCCI uses profits to promote cricket
As long as the BCCI uses the profits from the IPL to promote cricket, the Indian Premier League will remain tax-free by law. But as far as the players' earnings from the IPL are concerned, they are taxable.
Why is there no tax on IPL?
The Revenue Department sent three show cause notices to the BCCI in 2016-2017. The notices asked the BCCI to explain why it should not pay tax on IPL earnings under Income Tax Act 12A. The Board of Control for Cricket in India approached the Mumbai bench of the ITAT in this regard. Reportedly, the ITAT rejected the Revenue Department's plea and ruled in favour of the BCCI.