Oscar-winning music composer AR Rahman has found himself in legal tangle with the tax department reportedly slapping a case of income tax evasion on him. The allegation is with regards to a payment of $7,50,000 (Rs 3.47 crore), that the 48-year-old received from a UK-based mobile company Lebara in 2010-11, for composing their ringtone.
It has been alleged that Rahman made Lebara transfer the money to an account of the AR Rahman Foundation (a trust). This violated the norms of the Foreign Contribution Regulation Act (FCRA) 2010, because the trust neither had permissions to receive foreign contributions, nor was the amount a donation — it was, in fact, a taxable income that he had received.
While Rahman was not available for a comment, his auditor, V Sadagopan, said over the phone from Chennai: "We have no idea why this issue has suddenly been raised after four years. Rahman will soon issue a formal statement."
A daily earlier quoted him as saying, "Rahman is keen on paying taxes and we’ve already paid 50% of the tax. The entire amount is kept in a fixed deposit. Intelligence officials have already visited Rahman’s office and scrutinised the records."