Monday, January 22, 2007

Shah Rukh Khan, the Baadshah of Bollywood, is also the Baadshah in Paying Tax

Shah Rukh Khan, the Bolywood “Baadshah” is now also the Baadshah in terms of paying tax among the Bollywood stars. He has been reported to be the most honest tax payer of Bollywood. However, earlier tax officials searched his house and office several times.

Financialexpress reported:

“Shah Rukh Khan is the "Baadshah " of income yax returns, being arguably the highest income tax payer in Bollywood. He once had a bad tryst with income tax officials. The story has its genesis in the year 1996, when just a few months after the taxmen had publicly felicitated him for being one of the few honest taxpayers of the film industry, the same taxmen knocked at his doors - for a search operation armed with warrant authorizations

Income Tax officers searched the residence-cum-office of SRK under warrant of authorization dated 17.12.1996 on 18.12.1996 and continued till 19.12.1996. Certain papers, files and two locker keys were seized under Panchanama . Thereafter two warrants of authorization were issued on 23.12.1996 with regard to each of the lockers for which the keys were seized on 19.12.1996. One locker was found empty whereas from the other locker jewellery worth Rs. 6.99 lakhs was found and inventorised under Panchanama dated 23.12.2006.

The last of the authorizations issued in the case of SRK dated 23.12.1996 was executed on that day itself. The assessment was required to be concluded within one year from the end of the month in which last of the authorizations were executed. Meaning thereby that as per the provision of section 158BE the assessment was required to be completed by 31st December 1997. Hence the assessment order passed u/s.158BC on 23.01.1998 was barred by time limitation and therefore quashed.”

It is good news for Indian government that the top actor of Bollywood is paying his tax regularly and having seen Shah Rukh Khan’s being honest to the government will inspire the other celebrities to pay their tax in time. Well done Bollywood Baadshah!