BCCI Tax Exemption: How government earns from IPL?

The Board of Control for Cricket in India (BCCI), the highest regulating body of Indian cricket, has enormous financial clout and sports impact. It is by far the richest cricket board out of 108 opponents globally, with income of about INR 20,686 crores in the fiscal year 2024. The media rights for the IPL season are a major factor in BCCI’s riches.

Disney Star and Viacom18 currently own the league’s broadcasting rights, which they paid an incredible INR 48,390 crores for for the 2023–2027 season. Many may be surprised to learn that the Indian Cricket Board does not pay income tax to the government, even though it is a private organisation that generates a sizable amount of cash.

Why is BCCI exempt from income tax?

As per the Tamil Nadu Societies Registration Act of 1975, BCCI is classified as a charitable entity, as its primary objective is to develop and promote cricket in India. Under Section 12AA of the Income Tax Act, BCCI enjoys Income Tax exemptions due to its status as a charitable organization.

Taxes Paid by BCCI and Government Income from the IPL

Many people were taken aback when the Income Tax Appellate Tribunal (ITAT) reiterated this in 2021. But BCCI isn’t completely tax-free. Its earnings from the league must be subject to Goods and Services Tax (GST). According to the Financial Express, a legislative report states that BCCI paid roughly INR 2,038.55 crores in GST in the fiscal years 2022–2023 and 2023–2024.

The government still makes money from the IPL by taking taxes from of players’ earnings, even though BCCI is exempt from income tax. Regulations state that overseas players must pay a 20% deduction from their taxes, while Indian players must pay a 10% TDS cut.

TDS collection from IPL 2025 Auctions

From IPL 2025 alone, the government collected approximately INR 89.49 crores in TDS from the salaries of 62 foreign and 120 Indian players who were sold in the auctions.