The Mozart of Madras, AR Rahman finds himself in a legal fix with notices from Madras High court seeking explanation regarding a case filed by the Income Tax department lately.
In the appeal filed by the Income Tax sleuths, it was stated that the star composer had evaded tax in an individual capacity by allegedly transferring his remuneration of Rs 3.47 crore to his charitable trust.
Into details, a senior IT official confirmed that Rahman made a contract of Rs 3.47 crore from a UK-based telecom company, to compose exclusive ringtones which was taxable. However, the case filed claimed that Rahman instructed the company to directly pay his remuneration to the charitable foundation to evade tax.
“After due deduction of tax, it can be transferred to the trust. But the same cannot be routed through the trust as income to the charitable trust is exempted Unser the Income Tax Act” the IT counsel added.
While Rahman’s team is yet to respond on the appeal filed, the IT department has moved the present appeal before the high court as the issue was set aside by Income Tax Tribunal.
