When it comes to the IPL and the exemption, does BCCI pay taxes to the government?: Knowing whether or not the BCCI pays taxes for the IPL is important since it’s possible that the Indian Premier League (IPL) is the biggest franchise-based cricket league in the world right now.
The IPL has gradually experienced a boost in standards and popularity since its first season in 2008.
Because of its popularity and profitability, IPL does really generate a considerable amount of income. Even the Orange Cap and Purple Cap sponsors were recently secured by the BCCI.
IPL is interestingly tax-free, which raised a few questions. Discover the cause of the problem below, nevertheless, now that the issue has been resolved.
The Rationale Behind The IPL’s Tax-Free Status
According to sources, after receiving three show-cause notices from the revenue department in 2016–17, the BCCI contacted the Income Tax Appellate Tribunal (ITAT) in 2021. The BCCI made the approach to argue against revoking the tax exemption they receive under Section 12 A of the Income Tax Act.
The bench ultimately agreed with the BCCI’s arguments and came to the conclusion that, notwithstanding the BCCI’s financial gain from the IPL, the organization’s core goal of advancing cricket remains. As a result, it was decided to exempt the IPL’s income from taxes.
Vice President Pramod Kumar and judicial member Ravish Sood later discussed the decision on the bench. They claimed:
On the surface, the fundamental nature of the activity of popularising cricket is not lost just because a sporting event is set up in a way to increase its popularity, leading to more paying sponsorships and higher resource mobilization.
How has the IPL benefited Indian cricket generally?
Indian cricket has benefited greatly from the IPL as a yearly competition, raising the game to the highest level. Team India currently has a long bench full of many excellent players thanks to the IPL. Leading performers like Jasprit Bumrah and Hardik Pandya were elevated to Team India thanks to the competition.
Additionally, the competition has aided the professional development of young cricketers from all throughout the nation. In addition to the professional prospects that the sport creates, the IPL has also generated enormous amounts of financial worth. Along with all of this, the IPL provides fans worldwide with enjoyment.