BCCI paid Rs249 crore in tax dues to government: FM

31 Aug 2011

1

The government has recovered Rs249 crore in tax dues from the Board of Control of Cricket in India (BCCI) consequent to the withdrawal of its tax exemption in the assessment years 2007-08 and 2008-09.

BCCI owed the government taxes amounting to Rs118.04 crore and Rs257.12 crore, respectively, for the two assessment years, finance minister Pranab Mukherjee informed the Rajya Sabha today.

BCCI, which was exempt from paying tax, was forced to pay taxes after the sports body amended its objects effective 1 June 2006. The change in objects was noticed during assessment proceedings of BCCI for the accounting year 2007-08, he said.

The change of status followed an Allahabad high court judgment in the case of Allahabad Agricultural Institute and another Vs Union of India and others, which held that once the objects are changed after registration, fresh registration for tax exemption is required as the earlier registration does not survive.

The government took recourse to this ruling and the registration granted to BCCI under section 12A of the Act was withdrawn in December 2009, with effect from 1 June 2006.

BCCI in its tax returns for the assessment years from 2007-08 to 2010-11 has shown incomes of Rs651.82 crore, Rs1,000.40 crore, Rs1.387.02 crore and Rs1,666.84 crore, respectively, as its gross receipts.

Since the income of BCCI is entirely exempt from tax under section 12A of the Income Tax Act ,1961, the question of disclosing low earnings to avoid paying taxes did not arise, Mukherjee said.

He said the Indian Premier League (IPL) is a part of BCCI and has no separate legal status.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more