Is BCCI Really Tax-Free? The Truth Behind Its IPL Earnings

BCCI earns substantial revenue from cricket, including the IPL, but does it pay income tax? Government records show that BCCI paid Rs.1,159.20 crore in taxes in FY 2021–22.

Does BCCI Pay Income Tax on IPL Earnings? Here's What the Records Show

Recently, ISH News released a video explaining why we should pay taxes. If you have not watched it yet, you can find it here.

In that video, we explained that people and organisations pay different types of taxes, including individual and corporate taxes.

We also recently saw the IPL and the Women's T20 World Cup with Indian Sign Language (ISL) interpretation. This raised an interesting question: the Board of Control for Cricket in India (BCCI) earns huge amounts of money from cricket, but how much tax does it pay?

The BCCI is one of the world's wealthiest cricket boards. The Indian Premier League (IPL) is a major source of its revenue.

How Does BCCI Earn Money?

The IPL generates revenue through several sources, including:

  • Broadcasting and media rights
  • Sponsorships
  • Advertising
  • Ticket sales

These activities bring substantial income to the BCCI. But does the board have to pay income tax on this money?

Is BCCI Exempt From Income Tax?

The BCCI was registered under Section 12A of the Income Tax Act in 1996. Its main objective is to promote cricket in India. Under the Income Tax Act, organisations that meet the conditions for charitable purposes may claim tax benefits under Sections 11 and 12. However, this does not mean that every rupee earned by such an organisation is automatically tax-free.

The BCCI has claimed tax exemptions on its income. But the Income Tax Department has questioned whether some of its activities, particularly the IPL and other commercial activities, qualify for these benefits.

In a written reply to the Rajya Sabha in December 2021, the Ministry of Finance said that tax authorities had denied BCCI's exemption claims on income from the IPL and other activities. The department had brought this income under taxation, and the decisions had been upheld by the Commissioner of Income Tax (Appeals) at that time.

How Much Tax Did BCCI Pay?

Government records provide a clear figure. According to a written reply by the Ministry of Finance in the Rajya Sabha, BCCI paid Rs.1,159.20 crore in taxes during the financial year 2021–22.

In the same financial year, the board reported revenue of approximately Rs.7,606 crore and expenditure of around Rs.3,064 crore. This shows that BCCI does pay substantial taxes. Its tax exemption claims and the treatment of particular income sources have been matters of dispute.

Is BCCI Completely Tax-Free?

No. BCCI does not have a blanket exemption from income tax. The tax treatment of its income depends on the applicable law, the nature of its activities and whether it meets the conditions for claiming exemptions.

In February 2025, the Bombay High Court also clarified that questions about BCCI's eligibility for tax exemptions and the status of its registration must be decided by the appropriate tax authorities through the legal process. The court did not declare all BCCI income tax-free.

So, while BCCI earns substantial money from cricket, it is not automatically exempt from paying taxes on all its earnings.

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