Income Tax Department asks for details from IPL franchises

The Income Tax Department of India has asked the BCCI for all the details of the eight IPL cricket teams and its franchises. The reason is that the IPL has become a huge revenue earning entity for the BCCI and the Income Tax Department is on investigation of the entire IPL structure.

The original idea was to have 8 overseas players, but it increased to 10 this year; and the franchises were to receive 80 % of the TV rights in the first five years and then 60% for the sixth to the tenth year – as per the deal. But not surprisingly, some of the franchise owners were not connected to the game of cricket prior to the IPL, but now they see the game and the league from a totally business earning point.

The exemptions which were given by the IT dept. were for the promotion of the game, which does not include the remuneration of cheerleaders and the famous IPL after match parties. This has however become a new trend in the game to add flavor and glamorize it. These expenses have no exemption according to the IT Dept.

As of now, the financial sector of the IPL is under the scanner of the IT Dept. we can hope to see some changes in the next IPL. But for now the IPL is the biggest news in the mainstream and its not running out scandals and topics to talk about.