New Delhi: If the biggest sporting event in South Asia - the Indian Premier League - moving out of India was bad enough, here's the knock out punch. BCCI is losing its charitable status under the amended Income Tax Act.
It will now face bouncers and yorkers from the income tax department.
The Income Tax Act - amended in 2008 - says there's no charity involved if an organisation carries on trade, commerce or business.
BCCI made over Rs 1,000 cr in 2007-2008. The Indian Premier League alone has showed tax deducted at source of Rs 91 crore. So there will be a tax payout for this. And Indian Premier League Chairman Lalit Modi has only made the case for the taxmen by bragging about IPL riches.
"IPL is a cash rich body and is making profits," Lalit Modi had said recently.
The only consolation is that moving to South Africa won't hurt all that much. India and South Africa share a double taxation treaty by which the Indian Premier League will enjoy tax credit for the tax they pay there. In other words no double taxes to be paid.
The Indian Premier League might have gone off to South Africa, but the battle with the UPA Government is only just beginning for the BCCI and for all its political clout, the richest sporting body will now have to cope with a not so charitable Government.
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