Mumbai, August 06: With their stupendous film deals and whopping endorsements and not to forget the highflying glitzy lifestyle, Bollywood actors always figured on Income Tax department’s hit list. And the latest actor to be in the line of fire is Shah Rukh Khan, who has been dragged to Bombay High Court over his earnings as a brand ambassador for Swiss Luxury giant Omega.
Under scrutiny, celebs are rarely spared by the IT department, which leaves no stone unturned to study their incomes. This time round, however, it’s the otherwise so cautious King Khan who has rubbed the department the wrong way.
According to reports, the department appealed against the superstar in December last year under order of the Income Tax Appellate Tribunal (ITAT) which had allowed Shah Rukh’s appeal over a tax deduction dispute.
At that time the actor had declared an income of almost Rs 20 Crores, including Rs 29 lakh as foreign income as the brand ambassador of Omega brand for the financial year 2002-03.
The IT department, however, was not convinced as it now says that the foreign expenses related to this income have to be calculated and under no circumstance is Shah Rukh eligible for tax deduction as claimed by him under Section 80RR of Income Tax Act.
What’s more is that this isn’t the first time the department has had issues with the superstar. Some time back the department had claimed that Shah Rukh owed a sum of Rs 19.43 lakh for the return he filed in 1998-99. Interestingly, on that occasion too the case related to his foreign income from Jeanne Arthes Perfume which had named a perfume after him.
–Agencies