Actor Rakul Preet Singh has responded to reports linking her to Income Tax searches over alleged financial irregularities. In an Instagram statement on Monday, she called the reports “false, malicious and speculative” and wrote, “The search was not pertaining to me.”

A part of her statement reads, “Let it be known that I am from the Armed Forces background and had no Godfather in the industry... I would also add here that I do not hold any benami property on behalf of anyone anywhere in the country or abroad. Neither has anyone ever gifted me any property at any time, nor do I accept such expensive gifts as a principle.”

The 35-year-old also asked for the reports to be retracted and facts to be clarified.

This comes after reports of the I-T Department conducting searches at 12 locations linked to Rakul and her father-in-law, producer Vashu Bhagnani, on September 28, over suspected fund irregularities. They were said to be investigating funds that are allegedly being routed abroad under the guise of financing film projects. Bhagnani has not responded to queries about the searches.

Mumbai: Income-Tax Appellate Tribunal (ITAT), Mumbai bench, has issued an order in favour of Bollywood actor Sonakshi Sinha, upholding her claim of foreign tax credit (FTC) — the taxes were paid in the UK of Rs 29 lakh. This claim had been denied by the tax officer as the relevant form was not filed in time. A similar order was passed in favour of Anuj Bhagwati, a salaried individual towards his foreign tax credit claim of over Rs 14. 2 lakh for taxes paid in the US.

The I-T Act provides that a tax resident of India is eligible for a credit for the taxes paid by him or her in another country. The foreign taxes could be against salary or professional income earned overseas or even relate to overseas assets. The credit against the Indian tax liability is allowed in the year in which such foreign income has been offered to tax in India. As a tax resident of India is subject to tax on his global income (India an d foreign source income), the objective of FTC is to mitigate double taxation.

Sinha’s I-T return for the financial year 2017-18 was selected for limited scrutiny to determine the correctness and eligibility of FTC claimed by her. The I-T officer ascertained that she had filed her tax return on September 22, 2018, but had filed form number 67 for claiming FTC much later on January 20, 2020. As per Rule 128 (9), this form was required to be filed on or before the date of filing the tax return. Owing to the belated filing, the FTC claim was denied and the litigation reached ITAT.

It should be noted that the Central Board of Direct Taxes has amended this rule. “The amended rules, which come into force from April 1, 2022, provide that the form can now be furnished on or before the end of relevant assessment year, as opposed to before the due date of filing the I-T return. This extension in time will apply to FTC claims for the current financial year 2022-23 and beyond,” said Puneet Gupta, partner, People Advisory Services at EY-India. But, the r ecent ITAT decisions will help strengthen the case of the taxpayers who were involved in similar litigation, for all FTC claims relating to earlier years.”

The ITAT agreed with Sinha’s submission that the filing of the form is a procedural requirement, and not mandatory. It also observed that Rule 128 does not prescribe for denial of credit of the FTC claim.

Last week, Sonu Sood’s house was raided by the Income Tax Department. There were allegations levelled against the actor regarding the usage of funds collected under his foundation. In an interview with BT, he fields questions regarding the accusations, and says that he continues to be determined to achieve his goals – personal, professional and humanitarian. Excerpts:

We have presented every single document, in fact, more documents than they wanted. I don’t have an inch of land in Jaipur or Lucknow as alleged and we have already provided the documents for that. As far as the violation of the FCRA (Foreign Contribution Regulation Act) norms go, any company or a foundation that’s listed for more than three years is eligible for an FCRA registration to receive funds. My foundation is not registered, so I can’t receive these funds.

The funds are still lying with the crowdfunding platform. I was just a voice for that platform to raise funds. All the help goes directly from the crowdfunding platform to the hospital (where a needy patient is being treated) or the medical colleges for education. Saying that I violated FCRA norms is wrong because the money didn’t come to India or to my foundation. There is not even one dollar, one cent or a penny that has reflected in my account. Every single person that we treated medically, we have given all the documents related to it, like the details of the patient, hospital, doctor, even their PAN numbers and phone numbers have been provided to the officials. We have every single thing on record, like details about whom we helped and how we helped. We have presented all the documents to the honourable department.

Any foundation that receives funds has a time limit of one year to use the funds. If the funds don’t get utilised, you can extend it to another year. These are the rules. I listed this foundation only a few months ago, close to the second wave of Coronavirus. Otherwise, during the first wave, when I started helping the migrants, I had people stepping forward who offered to book buses for the migrants. We weren’t collecting money then. I started collecting funds (for my foundation) only in the last four-five months. As per rules, I have over seven months more to use these funds. I am not going to waste people’s hard-earned money, and my hard-earned money. I am saying the latter because 25 per cent, to at times 100 per cent of the remuneration I have charged for brand endorsements directly went to my foundation. I did endorsements free of cost if the brands donated money. So, the funds in the foundation are also my personal funds, which I donated. I have had little kids breaking their piggy banks to offer Rs, 600 or Rs. 800, a blind woman donating her five months’ pension... and this amount is not less than crores of rupees for me. When the officials were going through the emails we received, there were 53,000 unread emails and around 8,000 unread messages on my WhatsApp chats. These were people trying to reach out to us for help. I have to make sure that every single penny we have gets utilised in the right way. And that is exactly why the funds are not fully used. We don’t want to waste money and break the trust of people.

I am planning to open a hospital in Hyderabad. A large number of patients that came to us, were treated at hospitals there. The medical infrastructure at some hospitals in Hyderabad is on a different level. The idea is that in the next 50 years, whether Sonu Sood remains or not, the free treatment of patients should continue with this charitable hospital. My dreams are big and I am on a mission. In the last couple of days, I have already spent Rs 2 crores on the hospital project. It will be a state-of-the-art, free of cost, medical facility of the best of quality for the needy. We are already working on an orphanage and school, too. Every project is in place.

It was a surprise when one day they came in early in the morning. While my elder son was travelling, my younger son got stuck in the house for many days as you can’t leave the house till the officials are done with their duties. I am a very good host. I welcomed them home and made sure they were comfortable and were taken care of. I told them that since they were going to be our guests for the next three-four days, I would like to make this a special experience for them. I told them, ‘You might be doing so many raids through the year, but at the time of leaving my place, you will say that this was the best experience so far.’ So, after four days, I asked them the question, and they admitted to this being their best experience so far. And I said that it will remain the best ever. When they left, I said, ‘I am going to miss you,’ and we all had a good laugh. They acknowledged the kind of work that I have been doing. They appreciated my work and said, ‘We know the kind of work that you have been doing. It is phenomenal.’ They were kind and sweet. They saw all the emails and messages where people were asking for help — to get a liver transplant or even asking to save their lives. There were people standing in front of my house, on the roads and spending their nights and days out there waiting for me to come out. It showed how much trust they have in me. During these three-four days of inquiry, these officials would ask for documents, and we would provide them. This used to go on the whole day, from early morning till the night. They were making sure everything was in place.

They will be the right people to answer this question. I was doing my job before and will continue to do so after they have left. There have been almost 12 surgeries that we have helped get done in the last few days after they left. At my end, nothing will stop me.

It is a process, it takes time. They keep asking for papers and documentation. We keep providing them with those and make sure that everything they ask for is provided to them as soon as possible.

I respect politics. We already have very good politicians. As far as I am concerned, I am not mentally prepared right now. I don’t know what will happen after two to five years. I never deny anything, but right now, I am not in the frame of mind to take such a big plunge. I have already declined two Rajya Sabha seat offers in recent times. The party said you deserve to be in Rajya Sabha, as it will give you a bigger platform to help more people, but I thought it might not be the right time to take that call, and so I politely declined those offers. I told them that I will definitely accept that when I am ready, but right now, I am not ready. I am thoroughly enjoying what I am doing right now. 

Mumbai: Two days after the income tax department alleged that Sonu Sood had indulged in tax evasion and indicated violations pertaining to foreign contributions received by his charity foundation, the actor told TOI that he worked for the poor and extended financial assistance to the needy after establishing their credentials.

“I have not received a single penny into the account of my foundation from abroad, so there is no question of any violation. All I did was to raise the voice for the needy on crowdfunding platforms in India and abroad, and they directly provided financial assistance after examining their documents,” he said.

Last week, the I-T department searched 28 premises in Mumbai and north India.

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Mumbai: Sonu Sood on Monday told TOI that he worked for the poor. The Income Tax Department had searched 28 premises in Lucknow, Kanpur, Jaipur, Delhi and Gurgaon connected with the actor and an Uttar Pradesh-based infrastructure company associated with him last week.

The department alleged Sood had evaded Rs 20 crore income-tax and accused Sood Charity Foundation of raising Rs 2.1 crore from overseas donors on a crowdfunding platform in violation of Foreign Contribution (Regulation) Act, 2010. The search continued for four days, due to which Sood claimed he had been unable to reach out to the needy approaching him for help. The actor stated his foundation just provided documents of those in hospital to the crowdfunding platforms.

Sood said, “Today I came out and saw people sleeping outside my house in the open to meet me for help. Some of them sold their valuables to travel to reach me. I was feeling helpless as I could not reach them in the last four days. I will continue doing good work irrespective of the political party in power. So even if Gujarat, Tamil Nadu, or any other state governments call me for help, I will do it everywhere, to bring a smile to the face of the poor and needy.”

“I am even talking with top people in Telangana to open a big hospital where poor patients can be treated and operated for free,” he said. The actor claimed there are 53,000 emails and 8,000 messages on his WhatsApp which his team has yet to attend, where people have sought help.

Sood claimed I-T officials said there was no problem with his books and appreciated his good work. He said, “I provided them all documents and will do the same in future if more documents are needed. Officials talked good about my work and I am cooperating with them.”

The I-T department also raised doubts after stating that the actor’s foundation collected donations of Rs 18.94 crore from April this year and utilised Rs 1.9 crore towards various relief works, while the rest of the money was lying in the foundation’s account. “I am spending all the money donated to my foundation according to the needs of the poor, there is a time limit to use the donation amount, and we are using it according to rules,” the actor said. 

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After the Central Board of Direct Taxes (CBDT) conducted searches on several premises associated with Sonu Sood last week, on Saturday, the Income Tax Department – in a statement – accused ‘a prominent actor’ of evading over Rs. 20 crore in taxes. The I-T department also alleged in a statement that the actor’s charity foundation (founded last year) has collected Rs. 18.94 crore in donations from April 2021 till date, but spent only around Rs. 1.9 crore in relief work. The statement mentioned that funds to the tune of Rs. 2.1 crore were raised from overseas donors on a crowd-funding platform in violation of FCRA (Foreign Contribution (Regulation) Act) regulations, and that investigation on the matter was ongoing.

Sood, who had remained tightlipped on the matter so far, took to social media on Monday morning to write, “You don’t always have to tell your story. Time will. I have pledged myself to the service of the people of India with all my strength and heart.”

The actor – who shot to national prominence after he arranged free transport through rail, air and road for migrant workers to reach their home states during the nationwide lockdown last year and has continued his humanitarian work through his charity established during the Coronavirus outbreak last year – added, “Every rupee in my foundation is awaiting its turn to save a precious life and reach the needy. In addition, on many occasions, I have encouraged brands to donate my endorsement fees for humanitarian causes too, which keeps us going.”

Sood added that he had been busy attending to “a few guests” for the last four days, “hence was unable to be at your service.” He ended the note with the quote – kar bhala, ho bhala, anth bhale ka bhala – adding, “My journey continues.”

Mumbai: Actor Sonu Sood has evaded Rs 20 crore income tax and routed his unaccounted income in the form of bogus unsecured loans from many fake entities, the Income Tax Department has alleged.

An I-T press release has also indicated violation in accepting and utilizing foreign contributions by the actor’s charity foundation, reports Vijay V Singh. It had collected Rs. 18.9 crore in donations from April this year and used Rs 1.9 crore towards relief work. “Rs 2.1 crore has been raised by Sood Charity Foundation from overseas donors on a crowdfunding platform in violation of Foreign Contribution (Regulation) Act, 2010,” the release said.

Last week , I-T had conducted searches at 28 premises linked to Sood and an UP infrastructure company he had formed in a JV for a real estate project.

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Mumbai: The Income Tax department had last week conducted searches at around 28 premises connected with actor Sonu Sood.

The searches were conducted in Mumbai, Lucknow, Kanpur, Jaipur, Delhi and Gurgaon and I-T officials recovered incriminating evidence pertaining to tax evasion. They also seized Rs 1.8 crore in cash and kept 11 lockers under prohibitory order. Sood was unavailable for comment over the phone.

The I-T press note stated, “Investigations so far have revealed the use of twenty such entries, the providers of which, on examination, have accepted on oath to have given bogus accommodation entries. They have accepted to have issued cheques in lieu of cash. There have been instances where professional receipts have been camouflaged as loans in the books of accounts for the purpose of evasion of tax. It has also been revealed that these bogus loans have been used for making investments and acquiring properties.”

The I-T press note stated that the infrastructure company was involved in bogus billing of subcontracting expenses and siphoning off funds. It said, “Evidence of such bogus contracts found so far are to the tune of over Rs 65 crore. Further, it has been unearthed that the infrastructure company has entered into a dubious circular transaction to the tune of Rs 175 crore with an infrastructure company based in Jaipur. Further investigations are being carried out to establish the full extent of tax evasion.”

Recently, Sood was in the news after his meeting with Delhi CM Arvind Kejriwal, where he was declared brand ambassador of the AAP government’s ‘Desh ke mentors’ programme for guiding students in making career choices. During the lockdown, Sood had helped migrants reach their native places by arranging transportation and food.

After the I-T department initiated its searches on Wednesday, Kejriwal came out in his support, tweeting that there are many difficulties on the path of truth, but it always wins.

“With Sonu Sood ji, there are prayers of lakhs of families of India who got his support in difficult times,” he wrote.

The Shiv Sena also came out in support of Sood and linked the I-T searches with the actor’s decision to become brand ambassador for the Delhi government.

Mumbai: Shiv Sena came out in support of Sonu Sood even as the income-tax department widened its tax evasion probe against the actor as it raided multiple premises in Mumbai, Nagpur and Jaipur on Friday. It had launched the action against Sood and some people linked to him on Wednesday. A real estate deal and some financial transactions linked to Sood are under the scanner.

The Sena said the action only started after Sood was appointed as brand ambassador of the Delhi government’s ‘Desh ka Mentors’ campaign.

A Saamna editorial in said: “BJP was at the forefront in appreciating Sood’s work during the lockdown. But when he decided to do social work as the ‘brand ambassador’ of the Atvind Kejriwal government, the surveys started on his homes...Making bogus allegations against ministers in Maharashtra, delaying the appointment of 12 nominees to the legislative council, I-T surveys on Sood is a sign of narrow-mindedness and such a childish game will boomerang one day.”

Mumbai: The income-tax (IT) department on Wednesday conducted a survey on the premises of actor Sonu Sood in connection with alleged tax evasion. The survey continued till late hours and officials declined to disclose any information. Sood was unavailable for comment over the phone.

I-T officials also searched a few premises in Uttar Pradesh. They claimed that both were unconnected operations. The UP action is linked to transactions with a contractor.

Recently, Sood was in the news after his meeting with Delhi CM Arvind Kejriwal where he was declared brand ambassador of AAP government’s ‘Desh ke Mentors’ programme for guiding students in making career choices.

During the lockdown, Sood had helped migrants reach their hometowns by arranging transportation and food.

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Income-Tax department officials descended on the premises linked to actor Sonu Sood in Mumbai and some other places on Wednesday in connection with an alleged tax evasion probe, PTI reported quoting official sources. They said the action is being carried out in at least half a dozen locations in Mumbai and Lucknow. It was not immediately clear if the action was being undertaken at Sood’s residence as well. A real estate deal is under the scanner of the department, they said. The Delhi government had recently said that Sood will be the ambassador of the Aam Aadmi Party government’s 'desh ka mentors' programme under which students will be guided in career choices.

“There are millions of difficulties on the path of truth, but the truth always wins. With Sonu Sood ji, there are prayers of lakhs of families of India who got Sonu ji’s support in difficult times,” Delhi chief minister Arvind Kejriwal tweeted.

Mumbai: Income Tax (I-T) department claimed to have found evidence of cash receipts of Rs 5 crore by actor Taapsee Pannu and her company and tax evasion of up to Rs 20 crore by Pannu, director Anurag Kashyap and others during raids carried out on Wednesday. A statement by the department also referred to discrepancies in deals worth Rs 300 crore which are linked to a now-dissolved production house part-owned by Kashyap.

The raids continued on Thursday, I-T said. In all, 28 premises belonging to Pannu, Kashyap, production houses Phantom Films (now dissolved) and Reliance Entertainment, talent management firms Exceed Entertainment and KWAN Talent Management Agency, and others were searched in Mumbai, Pune, Delhi & Hyderabad.

I-T officials questioned Pannu and Kashyap at a hotel in Pune where they were shooting for a movie. I-T officials said they are probing Pannu’s endorsement of over two dozen upcoming projects and the signing amounts she has received.

The I-T department, in a statement, without identifying Pannu, said, “Evidence of cash receipts by the leading actress amounting to Rs 5 crore has been recovered. Apart from this, non-genuine/bogus expenditure to related concerns by the leading producers/director having tax implication of about Rs 20 crore has been detected. Similar findings have been made in the case of the leading actress also.” Officials said they are investigating two tax evasion cases involving Phantom Films and people-entities associated with them. In the second case they are also investigating Pannu and a company promoted by her.

The I-T department claimed to have unearthed evidence of suppression of income by Phantom Films by comparing it to actual box office collections. “The company officials have not been able to explain the discrepancy of around Rs 300 crore. Evidence related to manipulation and under-valuation of share transactions of the production house amongst the film directors and shareholders, having tax implication of about Rs 350 crore has been found and is being further investigated,” said the statement.

Digital data in the form of emails, WhatsApp chats, hard disks, etc, has been seized during the searches, the release said. Seven bank lockers have been placed under restraint.

Mumbai: The Income Tax department on Wednesday searched the premises of director Anurag Kashyap, actor Taapsee Pannu, film production houses Phantom Films (now dissolved), Reliance Entertainment, and talent management firms Exceed Entertainment and KWAN Talent Management Agency for alleged tax evasion.

I-T officials also reportedly questioned Kashyap and Pannu in Pune where they were shooting for a film. The department is examining the last few years’ financial records of these firms and individuals, said a senior I-T officer.

Political leaders alleged the duo was targeted by the I-T department for criticising the central government’s policies. NCP minister Nawab Malik said the Centre was suppressing their voices through such action, while RJD’s Tejashwi Yadav tweeted that the government “is chasing social activists, journalists & artists to threaten them against calling spade a spade”.

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Among the voices that claimed that filmmaker Anurag Kashyap and actress Taapsee Pannu have been ‘targeted’ by the income-tax department for criticising the central government’s policies was that of activist-lawyer Prashant Bhushan. “Filmmaker Anurag Kashyap, Actor Taapsee Pannu Face Income Tax Raids. BJP’S A team at work to harass, intimidate & silence those who don't fall in line. India has never seen such malafide use of IT dept, ED, NIA, police etc,” Bhushan tweeted on Wednesday.

Income-tax officials, however, claimed that one should not “connect the searches with any other reason”. They said they had found discrepancies in the income earned by these firms/individuals and their returns filed with the department that indicates tax evasion.

The officials collected digital records and files during the searches at film production houses Phantom Films (now dissolved) and Reliance Entertainment, talent management firms Exceed Entertainment and KWAN Talent Management Agency, as well as Kashyap and Pannu.

Commissioner of Income Tax and CBDT spokesperson Surabhi Ahluwalia confirmed the searches without disclosing any names, adding that the action was related to tax evasion.

Phantom Films was dissolved two years ago after one of its promoters faced sexual harassment charges from a former employee.

A Reliance spokesperson said that Reliance Entertainment premises were searched because of its past association with Phantom Films and they are not facing any scrutiny. I-T officials searched the premises of people connected with the company including Kashyap, Vikas Bahl and Madhu Mantena.

Phantom Films was co-producer of ‘Manmarziyaan’ which was directed by Kashyap and featured Pannu. Kashyap, along with Reliance Entertainment, had also produced another Pannu-starrer film ‘Saand Ki Aankh’.

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The Income Tax Department on Wednesday raided premises linked to actor Taapsee Pannu, filmmaker Anurag Kashyap and the promoters of his now-dissolved production house — Phantom Films. Officials said the searches were part of a tax evasion probe against Phantom Films. NCP leader Nawab Malik said the raids were an attempt to suppress the voices of those speaking against the Narendra Modi-led government.

The I-T department searches were carried out across 30 locations in Mumbai and Pune, also covered Reliance Entertainment group CEO Shibhasish Sarkar and some executives of celebrity and talent management company KWAN, officers said. The raids began in the morning and were continuing till late evening.

The action is part of a probe against Phantom Films, which was dissolved in 2018, and its then promoters Kashyap, director-producer Vikramaditya Motwane, producer Vikas Bahl and producer-distributor Madhu Mantena.

The I-T department sources said some inter-linked transactions between the entities raided are under the scanner of the department. The raids, they added, are aimed at gathering more evidence to further investigate the tax evasion allegations against them.

The business transactions of films made under the banner of Phantom Films, founded in 2011, are also being probed, the sources said. The searches against Mantena are being carried out in context of his links with KWAN, of which he is a co-promoter.

Founded in 2011, his production house Phantom Films  produced films such as “Lootera”, “Queen”, “Ugly”, “NH 10”, “Masaan” and “Udta Punjab”. Both Kashyap and Pannu, who worked together in the 2018 film Manmarziyaan and are now collaborating for film Dobaara, are known to be outspoken about their views on a range of issues.

Responding to a question at a press conference in Delhi, Union minister Prakash Javadekar rejected allegations that the raids against Kashyap and Pannu were linked to their comments, which are seen at times critical of the BJP.

“This is too much,” he said of the question. “Probe agencies undertake investigations based on credible information and the matter later goes to courts as well,” he added.

In Maharashtra, the debate intensified with state minister and NCP leader Nawab Malik describing the searches as an attempt to suppress the voices of those who speak against the Narendra Modi-led government.

“Central agencies like ED, CBI, and Income Tax are being used to target those who take an anti-government stand and speak against the policies of the regime,” the minister told reporters in Mumbai.

“The premises of Anurag Kashyap and Pannu have been raided. Both were raising their voices against the Modi government,” he said.

Pannu’s last tweet was on March 1, when she spoke on the Supreme Court asking a man accused of repeated rape whether he was willing to marry the 18-year-old victim. The actor, 33, put out a strong-worded post on the matter. Kashyap, who had visited JNU and Shaheen Bagh during the anti-CAA protests last year and is known to be equally outspoken, has been quiet on Twitter of late except for occasional retweeting.

The 48-year-old filmmaker, one of the most prominent new directors in Hindi cinema, is the man behind “Black Friday”, “Dev D” and the two-part crime saga “Gangs Of Wasseypur”.