Madras High Court sends notice to Oscar-winning singer AR Rahaman for tax evasion. The Income Tax Department alleges that in the 2011-12 financial years AR Rahman evaded large sums of tax.
The Income Tax Department approached the Madras High Court. The court sent a notice to the singer on that basis.
According to the Income Tax Department, the singer signed a contract with a British telecom company in the 2011-12 financial years. AR Rahman made the ringtone for that company. From there, AR Rahman’s income was 3.46 crore rupees.
According to the Income Tax Department, the singer did not take the money directly to his own account for tax evasion but took it to the account of his voluntary organization.
The income tax department claims, The income earned by AR Rahman is taxable. By giving the tax of that Rs 3.47 crore, the singer can give the rest of the money to the voluntary organization.
As there is an income tax exemption on the income of the voluntary organization, this money cannot be exchanged through that charitable organization.
That is why the Income Tax Department approached the Madras High Court. A division bench of Justices TS Shivagannam and V Bhavanani Subbaroyan sent notices to Rahman.
In February 2020, AR Rahman was fined Rs 6.79 crore including Central Excise and GST by The Income Tax Department. The Madras High Court had issued a temporary stay on that order.
Incidentally, the voluntary organization run by AR Rahman creates opportunities for education, music, and a better life for those who underprivileged, mentally, and physically challenged.