Shahrukh Khan has been one of the highest tax payers not just only among the film fraternity but in the whole country. But King Khan who is very particular about paying his taxes on time seems to be under the Income Tax scanner. The Bombay High Court admitted an appeal, by the IT department, challenging an order of the Income Tax Appellate Tribunal which had ruled in the star"s favour in 2008.
The IT department claims that Shahrukh owes a sum of Rs 19.43 lakh for the return he filed in 1998-99. During that period SRK had declared his total income as Rs 2.01 crore out of this, Rs 72.67 lakh was shown as earnings from international advertising and endorsements. The Rs 19.43 lakh was shown as advance received towards royalty from Jeanne Arthes Perfume for naming a perfume after him.
SRK had sought deductions under section 80RR of the I-T Act, by claiming it to be professional receipt from a foreign source and not an income. The act allows some special deductions for professional Indian residents such as actors, sportsman, doctors, musicians etc who earn foreign currency. The IT Department however claimed that SRK earned the money by endorsing a foreign brand and not in his capacity as an actor. It remains to be seen if Shahrukh pays the due amount to the IT Department or wins the case against them.
The IT department claims that Shahrukh owes a sum of Rs 19.43 lakh for the return he filed in 1998-99. During that period SRK had declared his total income as Rs 2.01 crore out of this, Rs 72.67 lakh was shown as earnings from international advertising and endorsements. The Rs 19.43 lakh was shown as advance received towards royalty from Jeanne Arthes Perfume for naming a perfume after him.
SRK had sought deductions under section 80RR of the I-T Act, by claiming it to be professional receipt from a foreign source and not an income. The act allows some special deductions for professional Indian residents such as actors, sportsman, doctors, musicians etc who earn foreign currency. The IT Department however claimed that SRK earned the money by endorsing a foreign brand and not in his capacity as an actor. It remains to be seen if Shahrukh pays the due amount to the IT Department or wins the case against them.
