Tax break for ICC cleared

Cabinet Move will allow India to host Champions Trophy

Paving the way for hosting the Champions Trophy in India, the Cabinet today approved amendments to the Income Tax Act to exempt income of residents and non-residents arising out of any international sporting event conducted in the country.

With the amendment of Section 10 of the Income Tax Act, 1961, the Central government will have the powers to notify the international sporting event, the beneficiaries of the exemption and the proportion and category of income that would enjoy such exemption.

The decision to provide tax exemption has been taken in view of a request from the International Cricket Council (ICC) and the Board of Cricket Control of India (BCCI) to Prime Minister Manmohan Singh to enable hosting of the Champions Trophy in the country in 2006, Finance Minister P Chidambaram told reporters after the Cabinet meeting. India was required to take a decision regarding finalisation of the contract before May 31, 2005.

He said India was allowed to host the champions trophy only on the condition that tax exemption would be granted. "Otherwise the event would have been allotted to some other country," he said.

The decision would not only benefit the event but also subsequent international sporting events, promote sports and result in revenue gain from various sources, specially tourism.

He said the exemption would be valid for other sports activities also, provided, that it was truly a multi-national event approved by an international body responsible for regulating the relevant sport.