A day after India's thrilling semi-final win over Pakistan, the Centre on Thursday handed out a Rs 45-crore bonanza to the International Cricket Council (ICC) in the form of a tax break. This benefit, approved by the Cabinet here on Thursday, will be available only on taxable income arising in India.

Speaking to newspersons after the Cabinet meeting, the Information and Broadcasting Minister, Ms Ambika Soni, said, “The tax exemption will be on the income arising in India from the ICC World Cup 2011 to the subsidiaries of the ICC, only where the contractual obligation to bear the income-tax liabilities is on these entities.”

The financial implication will be Rs 45 crore approximately, she added. The Government has always been taking a sympathetic view on cricketing activities in India. But with the game becoming a big commercial success, the Government has been looking to take a share of the income earned by the administrators as well as the players. A case in point has been the Indian Premier League (IPL) tournaments, where taxman has been proactive in collecting taxes from cricket played in India. IPL is a 20-20 format.

When it comes to an international sporting event organised in India the Government has been time and again extending concessions. In 2005, the Cabinet had approved a proposal to amend the Income-Tax Act, 1961 to exempt income of both residents and non-residents arising from an international sporting event conducted in India. Consequently, exemption from income-tax was granted to ICC for the ICC Championship Trophy 2006.

Sport enthusiasts contend that tax breaks are necessary to promote sporting activities in India and other countries do offer such concessions. Promotion of sports also has a big influence on increasing tourism.

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