January 10, 2011 (Sampurn Wire): Bollywood superstar Shah Rukh has come under the wrath of Income Tax department. King Khan had been gifted a villa in Dubai by the Nakheel Public Joint Stock Company (PJSC). However, this gift has become a problem for the star as I.T department is not ready to consider it as a gift.

According to the I.T department, SRK received this villa in return of lending his name for promoting the company. So, it cannot be considered as a gift and will be taxable. In 2008-09, when SRK paid 126.31 crore as his income tax return, this property was shown as a gift.

The I.T department issued a notice against King Khan saying that he will have to pay tax for this Signature Villa at the Palm Jumeirah, which is worth Rs 17.84 crore. PJSC gifted the villa on September 16, 2007.

However, after scrutinising the returns of SRK, the I.T department has strongly said that it will be taxable and the actor will have to pay penalty for hiding the accurate income. But Shah Rukh is still maintaining that the Signature Villa does not come under his income, according to the provisions of Section 28(IV). He said that the income was from his profession, house, property and capital gains.

On November 26, 2010, SRK was issued a notice in this regard from the I.T department. Nakheel also submitted a letter on October 2010, saying that it was not given for any professional services.

Now, it will be interesting to see if SRK can come out of this trouble!

--Sampurn Wire