Press Information Bureau

Government of India

Cabinet

31-March-2011 18:29 IST

Tax Exemption under section for the ICC Cricket World Cup 2011

Tax Exemption under section for the ICC Cricket World Cup 2011 The Union Cabinet today approved the proposal of Ministry of Finance for exempting ICC Cricket World Cup 2011 from income tax under section 10(39) of the Income Tax Act 1961 in respect of income which is arising in the India from the ICC World Cup, 2011 to the subsidiaries of the ICC, only where the contractual obligation to bear the income-tax liability is on these entities.

The financial implication will be Rs.45 crore approximately.

Background:

In 2005, the Cabinet has approved a proposal to amend the Income Tax Act, 1961 to give an exemption to the income of both residents and non-residents arising from an international sporting event conducted in India. Consequently, exemption from income tax was granted to ICC for the ICC Championship Trophy 2006.

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RCJ/SH/LV

Tax exemption for ICC World Cup income in India grants tax-free status to ICC subsidiaries contractually liable to bear tax. The Union Cabinet approved an income tax exemption for income arising in India from the ICC Cricket World Cup 2011, applicable to income received by ICC subsidiaries only where those entities are contractually obliged to bear the income-tax liability; this follows earlier amendments granting tax relief for international sporting events hosted in India.