Every year billions of rupees are wagered in IPL, this is how the government also earns money

IPL or Indian Premier League is the world's most expensive and famous cricket league. Every year, games worth billions of rupees are played in IPL. 

IPL is not just a cricket tournament but has become a big industry where everyone from players to team owners, broadcasting companies and the government earns a lot every year. The Indian government may not get direct tax on this league but indirectly it has become a big revenue generator for the government.

This year too, the craze of IPL 2025 is at its peak, due to which the discussion about the income and tax from this tournament has intensified. In such a situation, let us know how much the government earns from this?

How much money is earned in IPL?

IPL earns the most from media and broadcasting rights. Star Sports and Jio Cinema together have bought the broadcast rights of IPL from 2023 to 2027. For this, they have made a deal for Rs 48,390 crore. In such a situation, IPL earns Rs 12,097 crore every year. Now this amount is divided 50-50 percent between BCCI and the franchise.

BCCI does not pay tax

You will be surprised to know that despite earning 12 thousand crores every year, BCCI does not pay even a single rupee in tax. The Government of India does not directly levy tax on the huge earnings of IPL. 

Actually, the reason behind this is that BCCI had argued in 2021 that the purpose of organizing IPL is to promote cricket, due to promoting the game, it has been kept out of tax. 

The Tax Appellate Tribunal accepted this appeal of BCCI and since then BCCI does not pay any tax to the government on the earnings of IPL.

How does the government earn money?

Even though IPL is tax-free, the government still earns from it. Actually, the government earns a lot from the TDS deducted on the salaries of the players. In the mega auction of 2025, 10 teams spent Rs 639.15 crore to buy players. 

During this, 120 Indian and 62 foreign players were auctioned. Now the government collects tax from the salary received by these players. 

For this, the rule is that the government takes 10% TDS on the salary of Indian players and 20% TDS on the salary of foreign players. In this way, the government got a tax of Rs 89.49 crore in IPL 2025.

Suppose if Rishabh Pant is the most expensive player in IPL and he gets a salary of Rs 27 crore, then he will have to pay 10 percent tax on it i.e. Rs 2.7 lakh tax.

This is how TDS is deducted

Indian players: 10% TDS on total salary of Rs 383.40 crore i.e. Rs 38.34 crore.
Foreign players: This time in IPL, foreign players got a total salary of Rs 255.75 crore on which 20% TDS is applicable, i.e. Rs 51.15 crore.

Source of income in IPL

1. Sponsorship deals: Sponsorship deals are a major source of income for IPL. Different brands spend crores of rupees on their branding in IPL.
2. Stadium ticket sales: Ticket sales during matches generate income for both the franchises and the government.
3. Merchandise sales: The sale of jerseys, caps, stickers and other cricket merchandise also generates a good amount of revenue in the IPL.
4. GST and other taxes: IPL also earns from food items, tickets and other services sold in the stadium.