The Income Tax department has issued a notice to Bollywood actor Shah Rukh Khan asking him to pay tax on the Rs 17.84 crore villa in the UAE, I-T sources said.
He received the villa as a gift from a Dubai-based company during assessment year 2008-09 for promoting a real estate project.
In April 2009, SRK had filed returns declaring income of Rs 126.31 crore for assessment year 2008-09. He said his income was from house, property, profession, capital gains and other sources.
The actor also included Dubai's signature villa in the returns, which is a part of The Palm, Jumeirah, as a gift given to him by Nakheel Public Joint Stock Company (NPJSC) on September 16, 2007.
According to the I-T department, the villa received by Khan under a gift deed from the Dubai-based company was in return for lending his name to promote the company. The department assessed that the villa was taxable and a notice was issued to Khan in November 26, 2010.
However, the actor replied saying the gift did not constitute his income from business or profession. The company also submitted a letter to the I-T department in October 2010, stating that Khan had not provided any professional services, I-T sources said.
NPJSC further clarified that the actor had attended the Annual day function as a gesture of friendship towards Sultan Ahmed Bin Sulayem, Nakheel PJSC's executive chairman.
However, the I-T department issued another notice on December 27, 2010 stating that NPJSC was using the brand name of Shah Rukh Khan for endorsing its Palm Project since 2004 on its official website and in electronic and print media. Also, the actor did not show any receipts related to the endorsement.
The department argued that for other endorsements, Khan was charging huge amounts and this was reflected in his returns, the sources added.
The I-T department said in its notice that an arrangement of business or transaction without putting it in writing and in good faith would under any circumstances be a business or transaction resulting in income/loss.
Khan could not be immediately contacted for his comments.
Source: http://movies.ndtv.com/KIFA-Special/StoryPrint.aspx?ID=ENTEN20110166238
He received the villa as a gift from a Dubai-based company during assessment year 2008-09 for promoting a real estate project.
In April 2009, SRK had filed returns declaring income of Rs 126.31 crore for assessment year 2008-09. He said his income was from house, property, profession, capital gains and other sources.
The actor also included Dubai's signature villa in the returns, which is a part of The Palm, Jumeirah, as a gift given to him by Nakheel Public Joint Stock Company (NPJSC) on September 16, 2007.
According to the I-T department, the villa received by Khan under a gift deed from the Dubai-based company was in return for lending his name to promote the company. The department assessed that the villa was taxable and a notice was issued to Khan in November 26, 2010.
However, the actor replied saying the gift did not constitute his income from business or profession. The company also submitted a letter to the I-T department in October 2010, stating that Khan had not provided any professional services, I-T sources said.
NPJSC further clarified that the actor had attended the Annual day function as a gesture of friendship towards Sultan Ahmed Bin Sulayem, Nakheel PJSC's executive chairman.
However, the I-T department issued another notice on December 27, 2010 stating that NPJSC was using the brand name of Shah Rukh Khan for endorsing its Palm Project since 2004 on its official website and in electronic and print media. Also, the actor did not show any receipts related to the endorsement.
The department argued that for other endorsements, Khan was charging huge amounts and this was reflected in his returns, the sources added.
The I-T department said in its notice that an arrangement of business or transaction without putting it in writing and in good faith would under any circumstances be a business or transaction resulting in income/loss.
Khan could not be immediately contacted for his comments.
Source: http://movies.ndtv.com/KIFA-Special/StoryPrint.aspx?ID=ENTEN20110166238
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