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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