The Income Tax department moving Madras High Court against the music composer for evading tax of Rs 3 crores, the high court has ordered a notice against Rahman.
As per reports, TR Senthil, standing counsel for IT department, Rahman received a sum of 3.47 crores in the assessment year 2011-12 in connection with a contract with UK-based Libra Mobiles to compose exclusive ring tones.
Rahman allegedly asked the company members to divert the funds to his charitable trust AR Rahman Foundation.
As per the information, any funds paid to trust and charitable organization is exempted from tax hence to avoid this tax payment, Rahman deliberately made this arrangement say sources.
The department accused that to avoid the tax net Rahman asked them to pay the remuneration to his trust.