Looks like the Navratri week has started on a good note for our Dabangg actress Sonakshi Sinha. The actress is making news of a foreign tax dispute that she has won and as a reward for that, Sonakshi has also been given a total sum of ₹29 Lakhs. So, clearly, Goddess Laxmi has showered her blessings on the actress. However, the case has also highlighted some of the tax credit rights of the citizens. So let’s understand what is foreign tax dispute all about.
Okay so, Sonakshi Sinha’s case came to light when an Income Tax officer did not accept her foreign tax claims. The reason given by the official was that the actress failed to fill out a form in the given time. Sonakshi had made the claim for the taxes paid in the United Kingdom. Now going by what the IT act says, any taxpayer will be allowed to claim the taxes they have paid in a foreign country. The motive behind this provision was to curtail double taxation on the taxpayers. But the IT officer denied this right to Sonakshi because she had not filled the credit returns at the time of filling her returns. So this matter reached the Income Tax Appellate Tribunal, Mumbai.
The end result of the case ended to be a favourable one for Sonakshi Sinha, and a similar win was granted to another taxpayer, Anuj Bhagwati, as per the news. The Tribunal gave out this judgement on grounds that filling a form is a procedure that the citizens need to follow but there’s no compulsion that it will take away the rights of the tax claims, and the same is stated in Rule 128.
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Sonakshi Sinha’s case also makes us aware of our rights as a taxpayer. In fact, we should keep ourselves updated with all the important rights, and not remain ignorant about them.