Crackdown On South Film Industry: Income Tax Seizes Huge Cash, Jewellery From 40 Locations
Chennai: The South film industry is under Income Tax (IT) scanner.
IT department carried out search and seizure operations this week relating to certain producers, distributors and financiers associated with the film industry.
The search operations were conducted at about 40 premises in Chennai, Madurai, Coimbatore and Vellore, the IT department said in a statement.
Undisclosed income exceeding Rs 200 crore, undisclosed cash amounting to Rs 26 crore and unaccounted gold jewellery exceeding Rs 3 crore have been seized thus far.
“During the course of the search operations, several incriminating documents and digital evidence relating to unaccounted cash transactions and investments have been seized. Secret and hidden premises have also been unearthed during the search,” IT officials said.
Searches of film financiers have revealed documents like promissory notes etc., relating to unaccounted cash loans, which were advanced to various film production houses and others, the department informed.
“In cases of film production houses, evidences reveal tax evasion, as the actual amounts realized from the release of films are much more than the amounts shown in the regular books of account. The unaccounted income so generated by them is deployed for undisclosed investments as well as for various undisclosed payments,” they said.