BCCI Tax Exemption Explained: How the Government Profits 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 organization that generates a sizable amount of cash.

Why is BCCI exempt from income tax?

Since the BCCI’s main goal is to advance cricket in India, it is categorized as a charitable organization under the Tamil Nadu Societies Registration Act of 1975. Because BCCI is a charity organization, it is free from income taxes under Section 12AA of the Income Tax Act.

BCCI’s Tax Payments and Government Revenue from 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.

- Advertisement -

TDS collection from IPL 2025 Auctions

The government received about INR 89.49 crores in TDS from the salaries of 120 Indian and 62 international players who were sold at auction during the 2025 Indian Premier League alone.