Shah Rukh Khan Wins Tax Dispute Case; ITAT Rules In Actor’s Favour- Report

There’s some good news for Bollywood’s Badshah, Shah Rukh Khan. As per reports pouring in, the actor – who recently entertained his fans with a dance performance at the 25th edition of the International Indian Film Academy Awards 2025, aka IIFA 2025, has secured a big victory in a dispute with the Income Tax authorities. Scroll below to know the details.

Shah Rukh Khan Wins Tax Dispute Case

As per a Times of India report, the ITAT (Income Tax Appellate Tribunal) delivered a verdict in favour of Shah Rukh Khan by quashing the reassessment proceedings and order issued by the tax authorities for the 2011-2012 financial year.

In a dispute over his income-tax return, the tax officer disputed Shah Rukh’s declared income of Rs 83.42 crore, rejecting his claims for foreign tax credit for taxes paid in the UK. Consequently, the officer reassessed the actor’s income at a higher amount of Rs 84.17 crore. This reassessment was made more than four years after the end of the relevant assessment year, specifically 2012-13.

Now, the ITAT bench held that reassessment of the case by the income-tax department was not legally justified, handing the actor a significant victory in his long-standing dispute over foreign tax credit claims. The litigation related to the taxation of Shah Rukh’s remuneration for the movie RA One, which was released in 2011.

According to the report, the agreement between the actor and Red Chillies Entertainments (a film production and distribution company founded by Khan), 70% of the film’s shooting was to take place in the UK and therefore 70% of the income would accrue overseas (which would be subject to UK tax including withholding tax). The actor’s remuneration, in this regard, was routed through Winford Production, a UK entity.

According to the report, an agreement existed between Shah Rukh and Red Chillies Entertainments, a film production and distribution company co-founded by the actor, stipulating that 70% of the film’s shooting would occur in the UK. Consequently, 70% of the income generated would be deemed overseas earnings, subject to UK taxation, including withholding tax. To facilitate this arrangement, the actor’s remuneration was channelled through Winford Production, a UK-based entity. The tax authorities contended that such an arrangement of payment, caused a revenue loss to India.

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Also Read: IIFA 2025: Shah Rukh Khan And Madhuri Dixit Make Fans Nostalgic As They Groove To Dil Toh Pagal Hai Songs- Watch

Grinell Jacinto

With nearly 10 years of experience, Grinell Esther Jacinto is the Desk Head of Bollywood Bubble. Her interests lie in everything that is kaleshi and she loves to dig deeper into the lives of B-town actors. She has a problem though – she loves horror films but will have chills the minute the theatres lights dims. She’s previously worked with Koimoi, UrbanAsian and SpotboyE.