I-T asks SRK to pay tax on villa gifted by Dubai Company

The Income Tax department has issued a notice to Bollywood actor Shah
Rukh Khan asking him to pay tax on the Rs 17.84 crore villa in the
UAE, I-T sources said today.

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 126.31 crore
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 I-T 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 I-T department in October 2010, stating that Khan had
not provided any professional services, I-T sources said.