Music director AR Rahman has been issued a court notice in a tax evasion case. Rahman was issued a notice by the Madras High Court on an appeal filed by the Income Tax Department. The Income Tax Department has found that Rs 3.5 crore has been transferred to the account of the AR Rahman Foundation. The Madras High Court upheld the appeal and ordered that a notice be sent to the Oscar winner.
The Income Tax Department has found that the reward for composing the UK-based Libra Mobiles ringtone was paid into the Rahman Foundation’s account, which was used to evade taxes. In 2010, AR Rahman composed the ringtone for a UK-based company. The case was reported in 2015. Libra Mobiles received Rs 3.47 crore during 2011-12 for composing and providing ringtones. The Income Tax Department has found that the money was paid into the Rahman Foundation’s account for tax evasion.
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He had a three-year contract with the company. According to the department, Rahman had said that his salary should be sent directly to the AR Rahman Foundation’s account. If it had come into Rahman’s account, he would have had to pay tax but the tax would not be levied once it was paid to the trust. Charities are exempt from the Income Tax Act.