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BCCI paid Rs 3500 crore in tax since the start of IPL

BCCI has raked in the moolah ever since the advent of the Indian Premier League (IPL). But the world's richest cricket board has also paid a huge amount as a part of the tax.

BCCI paid Rs 3500 crore in tax since the start of IPL

Mumbai, Feb 9: The Board of Control for Cricket in India (BCCI) has not just raked in the moolah ever since the advent of the Indian Premier League (IPL), but the world's richest cricket board has also paid a huge amount as a part of the tax.

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As per a Times of India report, BCCI has paid around Rs 3,500 crore as a tax since the financial year 2007-08. Since its inception in 2008, the income tax department has refused to grant an exemption to the board. The IT department has labelled home-grown annual league as a commercial activity. At a rough estimate, BCCI has earned around Rs 12,000 crore from its popular league till date.

"Earlier, BCCI would get a tax exemption since it was considered a charitable organisation. However, after IPL began, the I-T department has changed its tune, saying IPL is a commercial activity. It means that in the last ten years, we have paid tax to the tune of Rs 3,500 crore, or almost Rs 350 crore a year. We have paid up under protest and filed an appeal that we should be continued to be assessed as a nonprofit body that promotes cricket," a source was quoted by the news daily as saying.

The board has also challenged the 30% tax demand in the income tax appellate tribunal (ITAT) besides filing a writ petition in the Bombay high court. It hopes to recover the tax paid if it's decided that it is entitled to I-T exemption.

Apparently, the BCCI's listed objective (in its memorandum of association) is "growth and development of cricket in India". Its argument, in this case, is that "T20 cricket/IPL is different but at par with Test and ODI cricket".

As per the source, the BCCI paid Rs 100 crore as income tax, under protest, to the I-T department for the financial year 2013-14.

"It's against the regular assessment for FY 2013-14. Although we've got a stay against the balance amount, we paid the net amount under protest without prejudice. It means we haven't accepted it, and have gone in appeal in ITAT," said the source.

The BCCI has been raking in the moolah since the start of the IPL, which only gets bigger and better with every passing year.

Story first published: Friday, February 9, 2018, 16:04 [IST]
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