SRK will have to include rent on gifted Dubai villa while filing I-T return

Bollywood superstar Shah Rukh Khan will have to include notional rent from his villa in Dubai in his income tax returns filed in India, said a ruling by the Income Tax Appellate Tribunal (ITAT), the Economic Times reported on Thursday.  

The development comes right on the heels of Khan finally winning his income tax case scrutinising his earnings from his stint on the quiz show Kaun Banega Crorepati.

According to the financial daily, Khan had contended that income from immovable property in Dubai would be liable to be taxed only in the UAE under the India-UAE tax treaty. Therefore, Khan submitted, he had not offered it to be taxed in India. 

While rejecting his contention, the tribunal did allow for credit for taxes already paid in the UAE to be allowed according to the law. 

The report added that Khan had been gifted the concerned villa, and he took possession of it in 2008. For financial year 2009, the report said, tax authorities had estimated the deemed rental value to be Rs 96 lakh. Subsequently, the I-T department sought to tax Rs 67.2 lakh, after a 30 per cent standard deduction, in Khan's hands.