Indian Premier League (IPL) is the world's most expensive and famous cricket league. Every year this league not only becomes a source of huge income for BCCI and franchise teams, but also fills the coffers of the government. The excitement of IPL 2025 is at its peak this year as well, and the discussion about the income and taxes from this tournament has intensified. IPL's biggest revenue comes from media and broadcasting rights. Star Sports and Jio Cinemas bought the broadcast rights from 2023 to 2027 for Rs 48,390 crore. That means IPL earns 12,097 crore rupees every year. This amount is shared 50-50 percent between the BCCI and the franchise.

Does the government have to pay tax on IPL?

If you think that the Indian government is directly collecting tax on the huge earnings of IPL, then it is not completely correct. The BCCI argued in 2021 that the purpose of hosting the IPL is to promote cricket, so it should be kept tax free. The Tax Appellate Tribunal accepted this appeal and since then BCCI does not have to pay tax on its IPL earnings.

Then how does the government earn?

Even though IPL is tax-free, the government gets a lot of profit from it. The government's biggest revenue comes from the TDS deducted from the players' salaries. In the mega auction of 2025, 10 teams spent a total of Rs 639.15 crore on the purchase of players. During this time, 120 Indian and 62 foreign players were auctioned. 10% TDS is deducted on the salary of Indian players and 20% on the salary of foreign players. In this way, the government got a tax of Rs 89.49 crore in IPL 2025.

How is the tax deducted from the salary of the players?

• Indian players: 10% TDS on gross salary of Rs 383.40 crore ie Rs 38.34 crore.


• Foreign players: 20% TDS on gross salary of Rs 255.75 crore ie Rs 51.15 crore.

Other revenue sources from IPL

• Sponsorship deals: Major part of IPL's revenue comes from sponsors. Different brands do their branding by spending crores of rupees.


• Stadium ticket sales: Ticket sales during matches benefit both the franchise and the government.


• Merchandise sales: Jerseys, caps, stickers and other cricket merchandises are also highly profitable.


• GST and other taxes: Government levies GST on food sold at stadiums, ticket sales and other services.

IPL: Cricket or money making machine?

IPL is not just a cricket tournament, but has become a huge industry, where everyone from the players to the team owners, broadcasting companies and the government get huge benefits. Although the Indian government does not get direct tax on this league, but indirectly this tournament has become a big source of revenue for the government.

PC:Punjab Kesari