The IPL, on one hand, showcases talented players delivering outstanding performances and gaining attention, while on the other, it generates millions, or rather, billions, of rupees. It’s a well-known fact that the BCCI, the world’s richest cricket board, benefits significantly from this league.
As reported, BCCI’s revenue reached INR 20,686 crore in the financial year 2024, marking an increase of INR 4,200 crore compared to 2023. The IPL contributes the major chunk of this revenue, making it a financial powerhouse for Indian cricket.
But have you ever thought about how much income tax BCCI pays on these massive IPL earnings? Well, the answer is going to surprise you!
How much tax does BCCI pay from IPL revenue?
Surprisingly, the answer is zero! Despite earning massive revenue from the IPL, BCCI does not pay a single rupee in income tax. But why?
To clarify, BCCI is completely exempt from paying income tax because it falls under Section 12A of the Income Tax Act, a provision typically granted to charitable (non-profit) organisations.
Officially, BCCI is registered as a charitable institution under the Tamil Nadu Societies Registration Act, 1975, with the primary objective of promoting and developing cricket in India. On February 12, 1996, it was granted tax exemption as a charitable institution under the Income Tax Act, 1961. In 2021, the Income Tax Appellate Tribunal upheld this exemption, ensuring BCCI’s tax-free status remained intact.
How does the government earn money from IPL?
Now, it’s clear that BCCI pays no income tax on IPL earnings. However, the government still benefits from the league through Tax Deducted at Source (TDS) on players’ salaries. In the IPL 2025 auction, the 10 teams spent a total of INR 639.15 crore, acquiring 120 Indian and 62 foreign players. Indian players’ salaries are subject to 10% TDS, while foreign players’ salaries are taxed at 20% TDS. According to reports, due to these tax rules, the government collected INR 89.49 crore in tax from players’ salaries in IPL 2025 alone.
How does BCCI make money from IPL?
To begin with, BCCI generates massive revenue from its media rights, which is well known. A significant share of its earnings comes from selling broadcast rights to television and digital platforms. In the 2023-27 cycle, Disney Star secured the IPL television rights for INR 23,575 crore, while Viacom18-owned JioCinema acquired the digital rights for INR 23,758 crore, bringing the total to INR 48,390 crore.
However, to add a crucial point here, Viacom18’s media and JioCinema businesses have merged into Star India Private Limited, leading to the formation of JioHotstar.
For the previous cycle (2018-22), media rights fetched approximately INR 16,347 crore. The sharp 196% increase in the 2023-27 cycle highlights the growing value of media rights in BCCI’s revenue model.
Apart from media rights, IPL sponsorships play a crucial role in boosting revenue, followed by IPL ticket sales.
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