Shah Rukh Khan gets tax relief on Dubai villa

Tribunal upholds actor's claim that it was gift

A Dubai villa owned by Shah Rukh Khan was out of the tax ambit, the Income Tax Appellate Tribunal (I-TAT) has ruled.

Called Signature Villa, the property was gifted to him by Nakheel Public Joint Stock Company. The dispute was over whether this was a gift or payment for services Khan had rendered to the company.

Since the villa was gifted in the assessment year (AY) 2008-09, it was tax-free, ruled the I-TAT. The I-T Act was amended in October 2009 to include any gift valued more than a certain amount to be taxable.

An I-T officer assessing Khan’s 2008-09