Singer-composer AR Rahman has been issued a notice by the Madra High Court 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, the Oscar-winning music composer 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.
The Times of India report quoted the IT Department counsel who said, “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.”