The Income Tax department has sent a show-cause notice to seven state cricket boards affiliated to the Board of Control for Cricket in India (BCCI), and has also withdrawn tax exemptions to them. This will be followed by an examination of the accounts of the state associations of Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bangalore and Ahmedabad, for which the exercise began six months ago. This move implies that all these cricket boards will be considered at par with any other corporate entity in India.
In 2008, the Central Board of Direct Taxes (CBDT) had withdrawn income tax exemption from the BCCI, saying that the board was engaged in commercial activity by organising the Indian Premier League Twenty20 tournament and was also selling advertisement space and broadcasting rights to make a profit.
A senior income tax official also confirmed that the said decision to withdraw tax exemption was taken after it was found that none of these boards were doing any charitable work and all the activities were commercial in nature.
[Source: The Times of India]
No comments:
Post a Comment