BCCI Tax Exemption: How government earns from IPL?

Indian cricket's supreme governing body, the Board of Control for Cricket in India (BCCI), has immense influence in sport due to its financial power. With a revenue of approximately INR 20,686 crores in the financial year 2024, it is the richest cricket board among 108 competitors worldwide by a significant margin. One of the key reasons behind BCCI's wealth is the media rights for the IPL season.

The current broadcasting rights of the league are with Disney Star and Viacom18, who purchased them for a staggering INR 48,390 crores for the 2023-27 period. Despite earning substantial revenue as a private organisation, it may come as a surprise to many that the Indian cricket board does not pay any Income Tax to the government.

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.

BCCI’s Tax Payments and Government Revenue from IPL

The Income Tax Appellate Tribunal (ITAT) reaffirmed this in 2021, raising eyebrows among many. However, BCCI is not entirely tax-free. It is required to pay Goods and Services Tax (GST) on its earnings from the league. According to a parliamentary report, BCCI paid approximately INR 2,038.55 crores in GST during the financial years 2022-23 and 2023-24 as per the Financial Express.

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While BCCI is exempt from Income Tax, the government still generates revenue through the IPL by deducting tax from players' salaries. As per regulations, Indian players are subjected to a 10% Tax Deducted at Source (TDS) cut, while foreign players face a 20% deduction.

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.