In a recent Lok Sabha session, Unstarred Question No. 2302 was raised concerning the tax exemption status enjoyed by the Board of Control for Cricket in India (BCCI). The question, directed at the Ministry of Finance, sought information on the rationale behind BCCI’s tax exemption, the government’s consideration of bringing BCCI under the tax structure to support other sports, and details about the income earned by BCCI in the IPL-2023 tournament. In response, the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, provided insights into the current situation.
Tax Exemption Status of BCCI
(a) The Minister acknowledged that BCCI is indeed claiming tax exemption under section 11 of the Income Tax Act, 1961. This section pertains to exemptions for income derived from property held for charitable or religious purposes. However, the Income Tax department, during assessment proceedings, has disallowed the exemption claimed by BCCI. Importantly, the matter is currently sub judice, indicating that legal proceedings are underway to determine the final stance on BCCI’s tax exemption.
(b) The question also raised the possibility of bringing BCCI under the tax structure to support and promote other sports in the country. The Minister’s response did not indicate a definitive move in this direction, and it is unclear whether the government is actively considering such a change.
(c) The reasons behind not bringing BCCI under the tax structure were not explicitly stated in the response. However, the sub judice nature of the matter suggests that legal considerations may be a factor in the government’s decision.
Income Earned by BCCI in IPL-2023
(d) The query about the total income earned by BCCI in the recently concluded IPL-2023 tournament was addressed by the Minister.
(e) However, the response clarified that, instead of separate accounts for various activities, a consolidated Income & Expenditure account/Profit & Loss account is filed by a taxpayer. Additionally, the return of income for the financial year 2023-24 is not yet due and, therefore, not available for disclosure at the present time.
Conclusion
The response from the Ministry of Finance sheds light on the complex and contentious issue of BCCI’s tax exemption. While BCCI claims exemption under the relevant section of the Income Tax Act, the Income Tax department has challenged this claim, leading to a sub judice status. The government’s stance on potentially bringing BCCI under the tax structure remains unclear, and the reasons behind this decision were not explicitly provided. As the matter is still under legal scrutiny, further developments will be crucial in determining the tax status of one of the wealthiest sports bodies in the world.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION No. 2302
TO BE ANSWERED ON MONDAY, 18TH DECEMBER, 2023
AGRAHAYANA 27, 1945 (SAKA)
“TAX EXEMPTION TO BCCI”
- SHRI MAHESH SAHOO:
SHRI M. SELVARAJ:
Will the Minister of FINANCE be pleased to state:
(a) Whether the BCCI despite being one of the richest sports body in the world enjoying tax exemption in the name of promoting cricket and if so, the details thereof;
(b) Whether the Government is considering to bring BCCI under the ambit of tax structure as it will help support and promote other sports in the country; and
(c) If not, the reasons therefor?
(d) whether the Government is aware of the total income earned by BCCI in the recently concluded IPL-2023 tournament; and
(e) if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a), (b) and (c) BCCI is claiming exemption under section 11 of the Income Tax Act, 1961. However, during assessment proceedings the exemption is being disallowed by the Income Tax department. The matter pertaining to tax exemption of BCCI is sub judice.
(d) and (e) In return of Income, instead of separate accounts for various activities, consolidated Income & Expenditure account/ Profit & Loss account is filed by a taxpayer. Moreover, return of income of financial year 2023 -24 is not yet due and is thus not available.
