IPL has emerged as one of the world’s richest sports leagues. In 2024, its brand worth surpassed Rs 1 lakh Cr, owing largely to a Rs 48,000 Cr media rights purchase.

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This deal alone profits the league at least Rs 12,000 crore per season. Additionally, the collective income of the ten IPL clubs was Rs 6,797 crore in 2024.

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Despite its enormous earnings, the IPL is immune from paying direct taxes to the Indian government.

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Exemption followed an appeal to the Income Tax Appellate Tribunal (ITAT), where the BCCI contended that IPL promotes cricket, making it as a non-profit activity.

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This decision has allowed IPL to keep a significant amount of its income without paying corporation taxes.

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While the BCCI is exempt from direct taxes, the Indian government reaps advantages from the league through tax deductions on player wages.

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During the IPL 2025, govt received about Rs 90 crore from the major auction. This income is derived from the tax deducted at source (TDS) on cricketers’ earnings.

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From Indian players salary, govt deducts 10% as TDS. For IPL 2025, 10 teams paid Rs 383.4 Cr to Indian cricketers, amounting in a tax payment of around Rs 38.34 Cr.

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Salaries for foreign players are subject to a 20% TDS. In IPL 2025, teams spent Rs 255.75 crore on international players while paying approximately Rs 51.15 crore in taxes.

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