Oscar-winning music composer AR Rahman accused of tax evasion; high court issues notice

Music composer AR Rahman is in the news for the wrong reason after the Income Tax department approached the Madras high court in connection with the music composer diverting Rs 3 crore through his charitable trust to evade tax. The court has issued a notice to AR Rahman.

Following the Income Tax department moving the Madras high court against the music composer for evading tax of Rs 3 crore, the high court has issued a notice to Rahman.

As per reports, TR Senthil, standing counsel for IT department, Rahman received a sum of Rs 3.47 crore in the assessment year 2011-12 in connection with a contract with UK-based Libra Mobiles to compose exclusive ringtones.

Rahman allegedly asked the company members to divert the funds to his charitable trust AR Rahman Foundation.

The department stated that in order to avoid the tax net Rahman asked them to pay the remuneration to his trust.

Any funds paid to trust and charitable organisations are exempt from tax and to avoid tax payment, Rahman deliberately made this arrangement, say sources.