AR Rahman Under Income Tax Radar For Evading Tax Of Over 3 Crores

Oscar winning music director AR Rahman is in trouble. The Madras High court has issued a notice in connection with his tax payment with respect to his income tax. The Income tax department filed a petition stating that the Oscar winner had cheated the department by evading a tax to the tune of Rs 3.75 crores.

It all happened when the music director entered into an agreement with Libra Mobiles in the year 2012 through England. But Rahman had suggested that the amount of about 3.5 crores be credited to "A R Rahman foundation" instead of crediting to his account.

Accordingly, Libra Mobiles company had paid the amount to his foundation directly. Income tax officer T R Senthil has alleged that this was done by Rahman to evade income tax and hence had filed a petitioned in the high court against the music director on behalf of the income tax agency.

According to Senthil, as per the rules of income tax, one should pay the tax for his earned income before investing in any NGO foundations or Trusts and cannot invest directly. Senthil has stated that Rahman did this to avoid paying a huge amount to the income tax department.

Senthil alleged that the musician had done this to prevent three crores from being paid to the income tax department.

It remains to be seen how the Oscar winner will counter this situation to save his reputation.