Thursday, September 23, 2021

Income Tax Notices to a Prominent Actor

The Income Tax Department conducted a search and seizure operation at various premises of a prominent actor.

I don't have any comments on what they found in the search. The actor, his accountants and lawyers would deal with that. But, I have an issue with one point that they said about his Charity Foundation. 

The Charity Foundation incorporated by the actor on 21st July, 2020 has collected donations to the tune of Rs. 18.94 crore from 01.04.2021 till date, out of which it has spent around Rs. 1.9 crore towards various relief work and the balance of Rs. 17 crore has been found lying unutilized in the bank account of the Foundation till date.

I absolutely do not see any issue with the information in the above paragraph. But, the Income Tax Department projected that information to defame him and it was widely published in the media as if he had done a fraud.

The Charity Foundation collected around Rs.18.94 crore in 6 months (From April to September of 2021) and they spent Rs. 1.9 crore. What is the Income Tax Department expecting? Is it expecting to spend everything within a month and not do any more charity work later on? 

If an organization receives more money than they need at that time, they would keep the money and utilize only the interest/income arising from that money. By that, they can do their social work regularly without depending on the donations from others later on. 

If the Income Tax Department has really found some fraud in the Charity Foundation, they should disclose those details, rather than blaming the foundation saying, "found lying unutilized in the bank account of the Foundation till date", as if it has been idle for decades, when it was just 6 months. 

With the present information that they disclosed and the news coverage, I could only say that they are trying to malign his Charity Foundation. 

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