Shah Rukh Khan to also pay tax for his Dubai villa, in India

Superstar Shah Rukh Khan not only owns properties in India but abroad too, and his plush villa in Dubai is known to all. But, we haven’t seen pictures of the villa yet. (Also Read: Shah Rukh Khan on female fans: Women have long nails and their love hurts)

Now, according to the new I-T rules, the actor will have to pay tax for his Dubai house in India. The Income Tax Appellate Tribunal (ITAT) has introduced a rule that all the Indian citizens owning a property outside India need to file for tax returns in India. So, it means that SRK’s Dubai house will be taxed in India under notional rent.

As per the previous rule of ITAT, the properties of UAE would be taxed under the India-UAE treaty. Hence, the tax would not be filed in India and would be paid in the said country. So, the actor had submitted his Dubai property tax under the India-UAE tax treaty. But, this has been rejected by the ITAT. Amit Shukla and GS Pannu (members of the ITAT) said, “Credit for taxes paid in the UAE, if any, would be allowed as per the law.” So, the income tax of SRK is being reworked again under ‘income from house property’ and it would be submitted to him. SRK can claim tax returns later on for his Dubai villa, but he would have to file it.

Shuddhasattwa Ghosh, EY partner, people’s advisory services said to TOI, “In many instances, I-T authorities have been holding that rental income from overseas residential property (or deemed rental income, if the house is not let out) would be taxable in India. This ITAT decision will strengthen their argument.”

So, it means that if a person owns two residential properties then only one would be considered as “self occupied” and exempted. The other would be taxed under “income from house property” on his annual value.

Prajakta Ajgaonkar

Passionate about writing, and a Bollywood lover, she is all that is sweet and endearing! She desires to put her best foot forward in everything that she does and loves to help anyone who’s in need.