AR Rahman receives notice from Madras High Court for alleged tax evasion

The Madras High Court has issued a notice to Oscar-winning music-composer AR Rahman based on the appeal filed by the Income Tax department.

The IT department appealed that the Mozart of Madras has evaded tax by allegedly transferring income of over Rs.3 crore, to his charitable trust AR Rahman Foundation. The Madras HC has issued a notice seeking an explanation about this case which was filed by the IT department when it found irregularities in the musician’s tax filing for the year 2011-12.

According to a report in Times of India, a division bench of Justice TS Sivagnanam and V Bhavani Subbaroyan have ordered notice to Oscar-winning music-composer.

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The IT department counsel claimed that the musician received Rs 3.47 crore based on a contract of composing exclusive ringtones with a UK-based telecom company. However, Rahman allegedly routed the remuneration to his charitable trust.

The IT counsel further added, “The income which is taxable must be received by Rahman. 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 under the Income Tax Act.”

Let’s see what Rahman has to say in his explanation about this case to HC. Until then, you guys stay tuned to this space for more updates.

Also Read: AR Rahman on doing fewer Bollywood films: There is a whole gang working against me

Pooja Sharma

Cinephile. Bibliophile. Pluviophile. Selenophile. Autophile. Aesthete. Blood group- Tea positive. Poetry lover. Sucker of rom-coms.

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