Should fashion designers get tax exemptions meant for artists?

ashishs

Ashish Sharma | June 15, 2010



The Bombay High Court has ruled that fashion designers are eligible for income tax exemptions meant for artists. A division bench of Justices Dhananjay Chandrachud and JP Devadhar has ruled that fashion designers are eligible for tax exemptions, much like musicians, authors, actors and sportspersons. The bench concurred with the findings of the income tax appellate tribunal which had earlier arrived at the same conclusion.

So fashion designers will now be able to claim tax exemption on 75% of their income from foreign sources. As a result, noted designer Tarun Tahiliani, who first raised the issue in 2000, for example, would be treated as an artist for income tax purposes. And the income tax department's plea that the exemption is really meant for fine arts and not applied arts stands nullified.

The high court's ruling, however, raises the question whether the idea behind the exemptions is to promote the arts or to reward all pursuits that involve any level of creative input. Do we really need to provide such incentives to fashion designers, especially of the stature of Tahiliani, who are engaged in a highly profitable commercial activity? Since many fashion designers depend on their pret-a-porter (ready-to-wear) lines to bring in volumes, shouldn't the exemptions be extended to all branded wear that goes through an essentially similar 'artistic' process?

Should fashion designers, then, get tax exemptions meant for artists?  

 

Comments

 

Other News

Caring for cancer patients: the expanded network of facilities

Health is a State subject, and the primary responsibility for providing healthcare services, including cancer care, rests with the respective state governments. However, the Department of Health and Family Welfare provides technical and financial support to States and Union Territories across the country

Capabilities, aspirations of India’s youth limitless: Modi

The capabilities and aspirations of India’s youth are limitless, prime minister Narendra Modi said in his remarks to the media at the start of monsoon session of the parliament on Monday.  "In the past month, the country has achieved many milestones, filling citiz

India gets the first hydrogen train

Prime minister Narendra Modi on Friday laid the foundation stone and dedicated to the nation various development projects worth around ₹14,700 crore in Jind, Haryana.   The PM positioned the city as a shining reflection of the good governance model. Emphasizing that the entire Haryana

Climate change is stealing sleep

Climate change has at least doubled the temperature-related sleep loss across 1,338 major cities worldwide over the past five decades, highlighting an emerging but often overlooked public health consequence of rising global temperatures. A new study by Climate Central estimates that between 2020 and

Cabinet approves Mobile Phone Manufacturing Scheme

The union cabinet chaired by PM Narendra Modi has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. It aims to further scale up the production, deepen domestic value addition, strengthen supply chain resilience, enhance global competitiveness. It

Building infrastructure is only half the job

Recent stories of stolen railway wires, disappearing communication towers and missing public infrastructure are often treated as bizarre law-and-order failures of India. Yet they raise a more fundamental question. Why does the State often discover the disappearance of a public asset only after it has alrea

Upcoming Conferences





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter