Problem for Priyanka Chopra: actress shows luxury watch, sedan as gift, ITAT orders to pay taxes

Priyanka Chopra is in trouble! Well, the Quantico actress was subjected to tax claims over a four-year period. Why did this happen?

According to a Times of India article, she showed a luxury watch and a luxury sedan and claimed they were given to her. The Income Tax Appeal Tribunal (ITAT) asked Priyanka to explain herself and pay the tax.

An LVMH-TAG watch valued at Rs 40 lakh and a Toyota Prius car valued at Rs 27 lakh were presented as gifts from companies and not from his professional income. And ITAT does not believe it! An undisclosed cash amount has been paid and received by Chopra and ITAT expects it to pay taxes on this amount as well.

The two items mentioned above fall under Article 28 (iv) of the taxable tax benefits of the Income Tax Act (IT). This section treats as taxable, “the value of any advantage or indirect benefit (whether or not convertible into money), arising from the business or the practice of the profession.

This decree was passed on January 16, 2018 by ITAT, covering four years from the 2006-07 fiscal year.

According to the report, the need to send this order came after numerous disputes between the actress and the IT department. There were search and seizure operations which were carried out in January 2011 by the Income Tax Administration (IT).

TOI spoke to an IT manager and the order said, “A company is an artificial person and therefore has no emotional sense of love and affection which are the cardinal factors in treating any transaction as a gift.”

The report further states that in one case Priyanka disclosed Rs. 24.87 lakh as income. Where does it come from? He was received by Red Chillies Entertainment, a production house of Shah Rukh Khan in 2006-07.

Let’s wait and see how Priyanka Chopra reacts to this.

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