Ash's tax plea adjourned!!!

Actor Ashwairya Rai sought Income Tax exemption, on income she earned as brand ambassador for the watch company, Longines, in 2002. The case that came up in this week in front of Income Tax Appellate Tribunal (ITAT), was adjourned to end-March.

Many other film n sports personalities viz. Sachin Tendulkar , Yuvraj Singh n some others have sought similar tax exemptions on their endorsement deals, and await the decision in Rai's case to assess their own liability.

In 2006, Rai enjoyed exemption for a portion of her income generated through foreign exchange for stage shows, but failed to convince tax authorities about granting a similar exemption on the Longines contract. After this, she approached the ITAT.

Rai was appointed brand ambassador for India by Longines for the year 2002-2003 with a contract worth over Rs.1 crore. In 2006, the assessing officer rejected Rai's submission for having a sum of Rs.30 lakh -- about 30 per cent of her income earned from Longines -- to be exempted from taxes, and this was upheld by the appellate IT commissioner.

The IT commissioner, who heard Rai's appeal, held the view that Rai "was not entitled for tax exemption under 80 RR. The examples of Sachin Tendulkar, Saurav Ganguly, Yuvraj Singh as referred by the assessment officer were given. He held that while promoting the same they are playing their natural game in which they have acclaimed popularity. Rai is just promoting a particular product and this has nothing to do with her profession of acting".

When contacted, Rai's CA K.C.Jain has not reverted back.