The Board of Control for Cricket in India (BCCI), which is no longer considered a “charitable organisation” for assessing income, owes over Rs.371 crore as tax to the government.
And this figure could be even higher as the Income Tax Department is yet to assess the income of one of world's richest sporting bodies for the last two fiscal.
For assessment year 2009-10, the BCCI's income stood at over Rs.964 crore on which the IT Department demanded a tax of over Rs.413 crore.
Paid only Rs.41.91 crore
But the BCCI paid only Rs.41.91 crore. As a result, the BCCI still owes over Rs.371.67 crore to the government as tax for 2009-10, reveals the information gathered under the Right to Information by activist S.C. Aggarwal.
Notably, the department is still to assess the income and tax status of the BCCI for the past two years (2010-11 and 2011-12).
In the assessment year 2007-08, the BCCI's total income stood at over Rs.274 crore on which it paid income tax worth Rs.118 crore.
But its income surged to Rs.608 crore in 2008-09, while the tax also increased to Rs.257 crore.
Notably, the BCCI used to get income tax exemption as a “charitable organisation” but now the government has withdrawn this exemption and the cricketing body's earnings now come under the head “business income.”
“The assessee (BCCI) used to claim exemption under Section 11 of the I-T Act 1961, available for charitable organisations. The department has withdrawn registration under Section 12 of the IT Act 1961 and rejected assessee's claim for exemption under Section 11 of the I-T Act 1961.
The department has assessed the BCCI's income under the head ‘Business Income',” the department said in its reply.
It owes Rs.371 crore as income tax Income for last two fiscal yet to be assessed
It owes Rs.371 crore as income tax
Income for last two fiscal yet to be assessed