Shah Rukh Khan wins Income Tax case, thanks to ‘Kaun Banega Crorepati’

Around 8 months ago, the Income Tax department had sent a notice to actor Shah Rukh Khan, seeking justifications for the tax he avoided paying. At the same time, they sought detailed information regarding his investments in various places including the British Virgin Islands and his house in Dubai.

However, Khan might heave a sigh of relief now, for the Income Tax Appellate Tribunal or ITAT has ruled in his favour.

They allowed him a deduction of Rs 10 crore and Rs 7 crore. (Also Read: Has Salman Khan’s ‘Tubelight’ broken the record of Shah Rukh Khan’s ‘The Ring’?)

The first deduction is pertaining to ‘Kaun Banega Crorepati’, a TV show that aired on private satellite channel Star Plus. The actor and the channel signed a deal wherein he would be paid for hosting 104 episodes. However, after 52 episodes, the show was called off and the makers wanted to recollect SRK’s remuneration for remaining episodes i.e. 10 crore. But he struck a counter-deal as per which, the sponsorship of Kolkata Knight Riders ( an IPL team owned by SRK), will be awarded to Star India, and he would pay Rs 10 crore to the team. Shah Rukh demanded exemption of this 10 crore rupees, claiming this was his expense. Initially disallowed by the IT officials, this has now been granted by ITAT.

For the second instance, Shah Rukh Khan attended a few press conferences along with Star India in London and Dubai. The IT officials assumed he earned through these events, and imposed a tax of Rs 7 crore on him. However, it was untrue and the actor earned no money through the events abroad. In latest developments, he was spared of paying 7 crore rupees.

Thus, Raees remains Raees!

Ranjini Maitra

Journalist. Writer. Reader. Enthu cutlet. Mood-swing machine. Day dreamer. Sandwiched between ‘live life fully’ and ‘lose some weight’. Mantra of life: Love and love more.