Madras HC issues notice to AR Rahman in tax evasion case

Madras: AR Rahman, allegedly, routed an income of over Rs 3 crore through his charitable trust, AR Rahman Foundation, to evade tax.

Madra High Court issued notice to Singer- music composer AR Rahman in connection with a case filed against him by the Income Tax Department. Rahman, allegedly, routed an income of over Rs 3 crore through his charitable trust, AR Rahman Foundation, to evade tax.

According to T R Senthil Kumar, the senior standing counsel for the income tax department, Rahman received an income of Rs 3.47 crore in the financial year 2011-12 for composing exclusive ringtones for a UK based telecom company. The contract lasted for three-years where Rahman asked the company to make the payment directly to his charitable trust, AR Rahman Foundation.

Asper the media reports, IT Department counsel said, ‘The income which is taxable must be received by Rahman. After due deduction of tax, it can be transferred to the trust. The same cannot be routed through the trust as income to the charitable trust is exempted under the Income Tax Act.”

Income Tax Department had first accused Rahman of tax evasion in 2015. The music composer had moved the Income Tax Appellate Tribunal in Chennai against the order. In September 2019, the tribunal had set aside the IT proceedings against Rahman and said there was “nothing on record” suggesting the money was taxable.