The Income Tax department of India has moved the Madras High Court against Academy award-winning music composer AR Rahman, alleged that the artist has transferred his income of Rs 3.47 crore through the AR Rahman Foundation to evade paying tax, Times of India reported.
TR Senthil Kumar, the senior standing counsel for the Income Tax department, alleged that Rahman had received an income of around Rs 3.47 crore from the United Kingdom’s Libra mobiles in the assessment year of 2011-’12.
Under the three-year contract, Rahman was to compose exclusive ringtones for the company. Kumar alleged that the music composer had instructed the company to make the payment directly to his AR Rahman Foundation.
The department said that since the charitable trust did not have a license under the Foreign Contribution Regulation Act at that time, the amount of Rs 3.47 crore was taxable income and cannot be considered as foreign contributions, according to The News Minute.
“The income which is taxable must be received by Rahman. After due deduction of tax, it can be transferred to the trust. But the same cannot be routed through the trust as income to the charitable trust is exempted under the Income Tax Act” the IT counsel added.
While Rahman has not responded to the news yet.