The Indian Premier League (IPL) has officially begun, and teams are battling it out for victory. Right after the Champions Trophy, the Board of Control for Cricket in India (BCCI) kicked off this highly anticipated tournament. But have you ever wondered how much BCCI earns from IPL and whether it pays any taxes? The answers might surprise you!
BCCI is recognized as one of the wealthiest cricket boards globally. A significant chunk of its revenue comes from the IPL, generating an astonishing ₹11,700 crore solely from organizing the tournament. With such enormous earnings, one might assume that BCCI contributes a substantial amount in taxes. However, the reality is quite different.
Despite its massive earnings, BCCI does not pay even a single rupee in income tax. This raises an important question—why is the organization exempt from taxation despite such hefty profits?
The answer lies in Indian tax laws. BCCI is registered as a charitable organization under Section 12A of the Income Tax Act. This special status allows it to be exempt from paying income tax on its earnings from the IPL.
Since BCCI was established with the primary objective of promoting cricket, it qualifies for tax exemptions. The earnings it generates are directed toward the development and promotion of cricket in India. As per tax regulations, an entity focused on charitable or sports-related activities is eligible for tax benefits, which BCCI has been utilizing for years.
This tax exemption was upheld in a crucial ruling on November 2, 2021, by the Income Tax Appellate Tribunal (ITAT). The tribunal ruled in favor of BCCI, acknowledging that although the board makes enormous profits from IPL, its core mission remains the advancement of cricket.
While BCCI’s tax-free status continues to be a topic of debate, its primary objective of promoting cricket has allowed it to enjoy substantial financial benefits. With IPL being one of the most profitable sporting leagues globally, this tax exemption remains a significant financial advantage for the board. Whether this policy will change in the future remains to be seen, but for now, BCCI continues to enjoy its tax-free earnings from IPL.
