Tamil Nadu: Income Tax inquiries on Tamil film producers turned out a $200 billion tax evasion scheme.

Seisms in filmmaking facilities reveal tax evasion because the actual amount realized from the production of films are much more than those shown in the usual books of account . Seisms by film distributors indicate a collection of unaccounted cash from the theaters .

CHENNAI: The I-T department announced on Saturday that it had seized 26 crore in cash and gold jewelry worth more than 3 crore after searching the premises of various Tamil film makers, manufacturers, suppliers, and financiers in Chennai and other districts for four days in a row.Financiers' seizures resulted in the seizure of promissory notes and other papers relating to unaccounted cash loans to various film production companies and others.Seisms in filmmaking facilities reveal tax evasion because the actual amount realized from the production of films are much more than those shown in the usual books of account, according to a note from the central board of direct taxes.According to departmental sources, the unaccounted income generated by them is used for undisclosed investments as well as various undisclosed payments.

According to the note, the distributors have formed alliances and have systematically suppressed the theatre collections, resulting in the suppression of actual income.Since August 2, the I-T department has been conducting searches in Chennai, Madurai, Coimbatore, and Vellore.