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CBDT's tax investigation: Sources
April, 20th 2010

The Central Board of Direct Taxes' tax investigation against the Board of Control for Cricket in India (BCCI) is underway, sources told Media. The authorities are currently collecting relevant information. The tax inquiry is under section 133(A) and a report is expected in the next 12-24 weeks.

The Mumbai Income Tax Department has sent a notice to BCCI. The apex governing body for cricket in India has to reply to the I-T Department by April 20.

Sources said BCCI is liable to pay all taxes arising out of the inquiry into the Indian Premier League (IPL), as it is not a registered entity. The tax exemption for BCCI was withdrawn in November 2009.

Sweat equity is liable to be taxed as a perk/gift under section 56. When contacted, CBDT said it has received no report on IPL tax matters so far.

 
 
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