We all are aware of Shah Rukh Khan's plushvilla in Dubai. Although we have never been able to get a glimpse of what it looks like, knowing his taste, it definitely seemsto be a dream home. But looks like he will have to pay tax for it in India. Here’s a little law that you’ll have to deal with now because there are going to be jargons about why it is imperative for him to pay the tax here in India.
The Income-tax Appellate Tribunal (ITAT) has formed a new rule that all citizens of India, who have a residence outside the country, will have to file it in their tax returns here. This means that the Dubai villa of Khan will be taxed in India as notional rent. Earlier, the rule from the ITAT was that they might be taxed for their properties in UAE, under the India-UAE treaty. The tax for the same property will be payed in the said country and it won’t be filed in India, for returns.
Earlier, the actor had submitted to the ITAT under the India-UAE tax treaty, that the immovable property in Dubai will be liable to tax in UAE. Hence, he didn’t offer it to be taxed in India. However, this move has been rejected by ITAT. Two members of ITAT bench, Amit Shukla and GSPannu stated, “Credit for taxes paid in the UAE, if any, would be allowed as per the law.” The income tax file of Khan is being reworked under the head ‘income from house property’ and it will be submitted to him. There will be ramifications done while making the decision for taxpayers, who have properties overseas. He can claim returns on the Dubai house later but he will have to file it.