Salman Khan exempted from Income Tax fine of Rs 14 lakhs

Salman Khan seems to have a knack of landing on the wrong side of the law. After the numerous cases the actor has been linked to, we hear that the Income Tax department also had a run in with the actor. Apparently, Salman Khan had been slapped with a fine of Rs. 14 lakhs for furnishing inaccurate particulars of income. However, in a ruling on July 30, the Income Tax Appellate Tribunal granted the actor a reprieve from the fine.

The I- T department levied the fine when during the financial years 2002-03 and 2003-04, Salman had shown a taxable income of Rs 3.74 crore and Rs 4.32 crore. Apart from this he had also claimed deduction of Rs 12.9 lakh and Rs 33.75 lakh in legal expenses on defending himself against criminal charges. However, the I-T department held this declaration as amounting to furnishing "inaccurate particulars…" and hence leveled the penalty.

Disagreeing with the I- T department and the commissioner of income-tax (appeals), the first level of appeal available to a taxpayer who had earlier agreed with the fine, the Tribunal, revoked the same stating that Salman Khan had incurred legal expenses and they were not bogus. "A wrong claim based on a different interpretation of the nature of the expense does not amount to furnishing inaccurate particulars of income," the tribunal said. On the other hand, the Salman Khan's omission of claiming the said legal expenses as tax exemption in his subsequent tax filings also helped reinforce the fact that the actor's claims were genuine.

Article written by staff at Bollywood Hungama. Read more

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