The union cabinet on Thursday is believed to have discussed the International Cricket Council's request to exempt the World Cup 2011 from income tax.

Based on that request, the finance ministry with the approval of sports ministry and the external affairs ministry is believed to have introduced the request at the cabinet meeting this afternoon. Sources say that the cabinet is expected to clear a note on the proposal.

Details of the cabinet note

Tax exemption under section 10(39) of the Income Tax act 1961 for the ICC Cricket World Cup 2011
Approval of the cabinet is sought to grant exemption from Income Tax under section 10 (39) of the Income Tax in resepct of income which is arising in 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.

Projected Benefits
The holding of the Cricket World Cup 2011 in India has an effect of promoting the game of cricket and helps to further relations with other participating  countries.

Time frame and manner of implementation
If approval of the cabinet is granted the Finance Ministry shall proceed to notify the sports event that is world cup 2011 and specify the income which is to be treated as exempt within period of two weeks after such approval.