Amitabh Bachchan in trouble over tax rebate ruling

Bollywood megastar Amitabh Bachchan on Monday got a
notice from the Supreme Court on a plea challenging a judicial verdict allowing
30 per cent tax rebate on his income to the tune of Rs.509 million in fiscal
2001-02. A bench of Justice S.H. Kapadia and Justice Aftab Alam sought
Bachchan’s stand on the lawsuit by the union government’s Income Tax Department.
The bench also asked the actor to account for his 2001-02 income and expenditure
with appropriate proof and adjourned the matter for final hearing on October 28.

The case largely pertains to the actor’s income from
the popular TV game show Kaun Banega Crorepati on Star TV.The Bombay High Court
had allowed the actor to avail the tax relief accepting his plea that as an
artist he was entitled to the exemption as per section 80 RR of the Income Tax
Act. The Income Tax Department, however, challenged the high court ruling
contending that section 80 RR of the IT Act grants tax rebates only to those
artistes who earn either by performing outside the country or receive payment
from foreign agencies.

The tax authorities have contended that the TV show was produced by Indian
firm Star India Ltd. that renders him ineligible for the tax rebate.