| INDIAN Income Tax department has issued a notice to Bollywood actor Shah Rukh Khan asking him to pay tax on the Rs178.4m ($3.93m/£2.52m) villa in the UAE, IT sources said yesterday.He received the villa as a gift from a Dubai-based company during assessment year 2008-09 for promoting a real estate project. In April 2009, Khan had filed returns declaring income of Rs1.26bn ($25.55m/£16.40m) for assessment year 2008-09. He said his income was from house, property, profession, capital gains and other sources. The actor also included Dubai's signature villa in the returns, which is a part of The Palm, Jumeirah, as a gift given to him by Nakheel Public Joint Stock Company (NPJSC) on September 16, 2007. According to the IT department, the villa received by Khan under a gift deed from the Dubai-based company was in return for lending his name to promote the company. The department assessed that the villa was taxable and a notice was issued to Khan in November 26, 2010. However, the actor replied saying the gift did not constitute his income from business or profession. The company also submitted a letter to the IT department in October 2010, stating that Khan had not provided any professional services, IT sources said. NPJSC further clarified that the actor had attended the annual day function as a gesture of friendship towards Sultan Ahmed Bin Sulayem, Nakheel PJSC's executive chairman. However, the IT department issued another notice on December 27, 2010 stating that NPJSC was ... |
