This refers to the editorial “Azim Premji’s philanthropy” (December 12). Azim Premji, the promoter of Wipro Limited who holds a 79 per cent stake, has decided to donate shares worth Rs 9,000 to a trust known as Azim Premji Foundation. In this case, the value of shares transferred by Mr Premji is not taxable, nor the Premji Foundation is liable to pay any tax and there is no tax liability on Wipro Limited.
Besides, though Mr Premji has transferred shares worth Rs 9,000 crore, he has not transferred this amount in cash or by cheque. This is like transferring a house worth Rs 9,000 crore, which may or may not be used by the Foundation for rental purposes. It could fetch some nominal rent. However, the donated money will remain invested in Wipro Limited.
Nevertheless, Mr Premji’s act has invited a huge amount of publicity for him as the biggest philanthropist and the media has suggested other corporate bigwigs follow suit, forgetting that the Tatas and the Birlas have been donating money before Azim Premji, Warren Buffett and Bill Gates were even born.
S C Aggarwal, New Delhi
