Shahrukh Khan Rs 15 Crore Villa in Dubai is a gift that won’t be taxed
As per the latest buzz, Bollywood King Khan Shahrukhs Dubai Vila costing more than Rs 15 Crore won’t be taxed by the IT tribunal. Sources has it that Nakheel PJSC a Dubai based company known for its famous palm project had decided to gift the villa to Shahrukh. The tax department was of the view that the villa in Dubai gifted to Shahrukh Khan was a camouflage to evade income tax. Also, the gift was seen as a remuneration to Khan for utilizing his brand image and in lieu of his stage performance at the company’s annual day event
But Shahrukh through his counsel has clarified that the chairman of the company, Sultan Ahmed Bin Sulayem, was his friend and thus wished to make the gift. He admitted to attending the annual day event, but said he merely addressed the employees and did not perform on stage, which would have amounted to brand endorsement.
On taxation of a gift in kind, ITAT (Income Tax Appellate Tribunal) pointed out that for the relevant financial year, gifts of immovable property made without any consideration were out of the tax ambit and has thus rejected the tax departments plea to tax the Villa in Dubai. So, for now it’s a relief to the King khan of Bollywood.
Report : Rushali