AR Rahman’s Income Tax controversy: Here’s what led to the case against the composer

A couple of days back, news came up stating that the Income Tax department has moved the Madras High Court against AR Rahman.
AR Rahman’s Income Tax controversy: Here’s what led to the case against the composerAR Rahman’s Income Tax controversy: Here’s what led to the case against the composer
  • 8
  • facebook
  • twitter
  • Share on whatsapp

A couple of days back, AR Rahman’s name came up online stating that the Income Tax department moved the High Court, and filed a case against the composer. Now, reports have come up explaining what really happened in the case. Apparently, the Oscar-winning composer signed a 3-year agreement with a US-based company, and he was paid Rs 3 crore for the same. However, AR Rahman asked them to send the said amount to his trust’s account.

This became an issue as all of the trust’s income would be exempted from tax under Section 11 and 13 of the Income Tax Act 1961. Had he received the amount directly to his account, he would have paid the tax, says the senior standing counsel for the income tax department, TR Senthil Kumar, according to The Times Of India. Apparently, this act is also violation under Foreign Contribution (Regulation) Act, 1976, as it involves fund from overseas.

Also read: Fahadh Faasil says C U Soon was an experiment as everyone's lives turned digital during the lockdown

The English magazine quoted TR Senthil Kumar as saying, “He had entered into a three-year agreement with a company in the UK to compose ringtone for them, for which, an amount of over ` 3 crore was agreed to be paid. But he had said that the amount could be sent to his foundation. For a trust, if it fulfills some conditions, all its income would be exempted from tax under Section 11 and 13 of the Income Tax Act 1961. By routing the full money to the trust, he does not want to pay tax.”

Anonymous 3 weeks ago

He is self made man, who literally thinks nothing beyond music and he brought pride to our nation. He is doing good to so many people and never asked for any PR for the good he does like our politicians, or celebrities posing for pictures. Even in corporate we can ask the company to set aside money for medical, PF which has tax breaks. So stupid that this is even a case they have to waste time. Please leave this gentleman alone and raid all our corrupt politicians. We will become the richest nation on earth

Anonymous 3 weeks ago

Ye b kuch kam nahi hai.

Anonymous 3 weeks ago

hey Indian government whats happening with PM CARE fund?

Anonymous 3 weeks ago

Isn’t trust money used for charity - taxes aren’t paid because it’s for charity .. what is wrong in that ..

Anonymous 3 weeks ago

If the money is going into his trust then at least it’s going towards good cause.

Anonymous 3 weeks ago

I know why AR Rahman is in the limelight. He has refused to suck up to the current government and this is obviously a witch hunt. We know you sir and stand by you in solidarity.

Anonymous 3 weeks ago

He committed a fraud and should be held accountable. It is that simple. I am sure his paid supporters will justify anything he does.

Anonymous 3 weeks ago

you are catching an honest guy but nothing on Salman Khan who killed someone on a road accident incident..how shameful!!

Pinkvilla has updated its Privacy and Cookie policy. We use cookies to improve your experience on our site and show you Personalized advertisement.

Options

Pinkvilla has updated its Privacy and Cookie policy. We use cookies to improve your experience on our site and show you Personalized advertisement