The IPL is not just a money spinner for sponsors, players and franchises but also for Government which earned a whooping Rs 91 crore as income tax from first edition of the Twenty20 tournament.
The revenue was received by the Central Board of Direct Taxes (CBDT) after it categorised the tournament under the “professional services” last year.
The taxes had been accrued as Tax Deducted at Source (TDS) from the remuneration paid to players, umpires, coaches, commentators amongst others by the organisers of the sporting extravaganza.
“The first edition of the IPL has fetched Rs 91 crore under the TDS category. The CBDT has brought a notification categorising sporting services as professional services last year,” CBDT Member (Revenue) Saroj Bala said.
On August 21 last year, the Board had notified the services under section 194 J of the Income Tax Act, 1961 as rendered by sport persons, umpires and referees, coaches and trainers, team physicians and physiotherapists, event managers, commentators, anchors and sport columnists as “professional services”.