Madras High Court issues a notice to A.R.Rahman for alleged tax evasion

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Oscar-winning music composer A.R. Rahman has been issued a notice by the Madras High Court with respect to a case filed against him by the Income Tax Department. According to the IT department, Rahman has allegedly routed an income of over Rs 3 crore through AR Rahman Foundation, his charitable trust, to evade tax. T R Senthil Kumar, the senior standing counsel for the IT department, told a leading daily that in the financial year 2011-12, Rahman received Rs. 3.47 crore for composing exclusive ringtones for a UK-based telecom company. 

Reportedly, the contract lasted for three years and the veteran composer-singer asked the company to make payments to his charitable trust directly. "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," T R Senthil Kumar told the daily.

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Speaking of The AR Rahman Foundation, it is a non-profit organisation established by Rahman and his family in 2009. The aim of the foundation is to create opportunities especially for the underprivileged, through music, education and leadership building.

(Source: Times Of India)

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