Aishwarya’s I-T exemption under scanner

From Miss World to Mrs Bachchan, actor Aishwarya Rai has come a long way. But a tax exemption she sought 13 years back on her prize money after winning the international title is still being debated before the Bombay High Court.

On Monday, the court admitted the income tax department’s appeal challenging the exemption sought by her by virtue of being a non-resident Indian (NRI).

In 1995-96, Rai had sought an income tax exemption on 50,000 pounds that she won after bagging the Miss World title. She had claimed to be an NRI in that period as she shot to international fame and globe-trotted.

Although the Bollywood star was granted the exemption that saved her Rs14 lakh, the I-T department had raided her Bandra home in 2000 when her passport was checked by the department officials.

 In 2003, the department sought the re-opening of her financial accounts for 1995-96 contending that her claims of being an NRI were not substantiated as she held an Indian passport.

However, when the matter was contested before the Income Tax Appellate Tribunal (ITAT), it had observed that at the time of seeking exemption, Rai had submitted the relevant documents. The tribunal was of the view that the department should have checked her passport at that time to avoid a situation like this.

Challenging the order, the I-T department filed an appeal in the high court earlier this year. On Monday, counsel for I-T department Beni Chatterjee argued that the time period (1995-1996) in which Rai claimed to have been an NRI, was not sufficient in order to seek a tax exemption.