Is Shahrukh Khan An Income Tax Defaulter ?

If sources are to be believed the Bombay High Court recently challenged Income Tax Appellate Tribunal’s order, which in June 2008 was ruled in SRK’s support. According to the appeal, SRK owes a sum of Rs 19.43 lakh, after an exemption of Rs 72.67 lakh for the year 1998-1999. An anonymous source suggests, “The appeals for the remainder of the amount will come up for hearing in separate cases over the next few weeks.”

During the year 1998-1999, SRK declared his annual income to be Rs 2.01 crore. However, out of this, Rs 72.67 lakh was acquired from international endorsements. Rs 19.43 lakh was touted as ‘towards royalty’ from Jeanne Arthes Perfume, who launched a perfume after SRK. For this, Shah Rukh Khan sought deductions under 80RR of the Income Tax Act, by claiming that the earnings were a professional receipt from an international source.

Nevertheless, the Income Tax department maintained that SRK garnered this sum by endorsement rather than his profession - acting.