Tax breaks for foreign earnings of actress!

Safin

The Income Tax Appellate Tribunal (ITAT) in Mumbai has passed a new order that is likely to benefit many actors and sportspersons. The tribunal accepted that while performing in stage shows abroad and modelling, Rai, as an actor, is entitled to benefits under section 80 RR of the Income Tax Act.

The section allows a certain percentage of tax exemption to authors, playwrights, artists, musicians, actors and sportspersons on income derived from practicing their profession abroad. Rai had claimed a tax exemption of Rs 54.9 lakh on the Rs 1.85 crore she earned abroad in the assessment year 2003-2004.

The earnings were from stage shows and endorsement of watches made by Swiss company Longines Francillon. Rai was first denied the exemptions.

The assessment officer had noted that she participated in the stage shows and advertisements not as an actor or artiste, but as "Aishwarya Rai", a popular figure. A bench of ITAT members A.L. Gehlot and R.S. Padvekar ruled, "An actor does not mean only acting in films.

It can be even on stage." It further ruled that though every appearance of a film star on stage may not be acting, if an actor is a professional, engaged by a party, wherein the assessee (actor) has to give a photo session or participate in video shoots, it amounts to acting.

Rai had appealed to the Commissioner of Income Tax (Appeal) who allowed her tax exemption for stage shows but not for endorsing the watch brand. The department appealed against the actor being granted an exemption for stage shows.

Rai, in turn, appealed against the decision to disallow her exemption for endorsing the watch brand. The tribunal also relied upon its earlier ruling of 2006 when actor Amitabh Bachchan - now Rai's father-in-law - had claimed tax exemption under section 80 RR for earnings from anchoring television show Kaun Banega Crorepati.

I find the whole incident distasteful. These guys, especially the Bacchan family inks deals worth crores and they don't want to pay their taxes worth lakhs and claim all kinds of exemptions. Atleast these guys should set a precedent.

Greedy Morons.

Well this pic sums it up

Agnel

See the way I see it, the world has become greedy. What is disheartening is the fact that educated "fools" turn greedy and find all kinds of loopholes to earn more.

So rich gets richer, the poor becomes poorer.

In a way, these guys are committing moral crimes for which there is no punishment as such. Now when people who believe in justice hear all this crap, they might turn against these kind of folks and MIGHT take law in their own hands to find justice.

Safin

was discussing this with someone who said that rich won't be rich if they didn't value money.
In a way its probably our idiotic mindset. We tend to think about their crores and think what is 50laks for them and they are better off giving to IT dept. But then anyone who has earned that much has earned it by knowing the importance of money and trying to keep every penny

It might look and feel disgusting but that's life

Agnel

If you have 100 rupees, would 10 rupees matter to you?

Btw, those who earn more "think" that the tax system is unfair to them. Imagine the guys who earn more actually use more of the system.

Travel includes burning fuel, if ash travels 10 times in a month, she pollutes the air more than any other normal celebrity. So she is bound to pay more, cos she uses more of the resources.

I don't understand why people fail to take up responsibility for their actions. Money is NOT everything, i wonder when will these greedy fools realize that.

Safin

The same logic doesn't even apply in US, especially when the republicans come to power

No the fact is that those guys care about the money more than us. It matters to them, more than anyone else, where they get their money from.

As a i said, you and me, probably, can sit here today and think that had we been in their position, we won't really care about a few lakhs, but i doubt its the same in their actual position. Its because they care about every penny, that they have all those pennies

Btw, i agree with your taxation reasoning. I also agree with the new taxation policy in the works in India. No exemptions, first slab(free) hiked to 5laks and then maximum 30% slab from some 20laks annual. Perfect and hassle free. No loopholes too as there won't be a single exemption for anyone to exploit.

Agnel

I only wish people understand the need for tax.

I heard an idiot who once said, "Why should I pay to the government to drive on these roads. It is my car damn it

"?

I couldn't stop laughing

He didn't even realize he is using public property which needs equal share (okay, appropriate share) from everyone