INDIA: India has at last decided to grant tax exemption for 2006 Champions Trophy

It has been reported that the Government of India has decided to amend the Income Tax Act in order to exempt from tax both residents and non-residents regarding receipts from international sporting events held in India. The International Cricket Council had for a longer period been threatening to move the 2006 Champions Trophy from India to another country (possibly Pakistan).

The Income Tax Act is now scheduled to include a possibility for the government to grant a tax exemption to multinational sporting events that are approved by an international sporting body. Quite remarkably the exemption will apparently apply not only to non-resident participants but also to resident taxpayers.