Tamil Nadu's Income Tax Department arrests movie makers and distributors

Raids carried out at 40 premises in Chennai, Madurai, Coimbatore, and Vellore . Unknown cash worth Rs 26 crore and unaccounted gold jewelry worth Rs 3 crore have been confiscated .

New Delhi, India, August 6: The Central Board of Direct Taxes (CBDT) announced on Saturday that raids were carried out at 40 premises in Chennai, Madurai, Coimbatore, and Vellore belonging to some film producers, distributors, and financiers.The search and seizure operation began on August 2nd, 2022.The CBDT said in a statement that secret and obscure structures were also discovered during the search.The search has revealed undisclosed income worth more than Rs 200 crore so far.

Further investigations are ongoing, according to the CBDT.Documents relating to unaccounted cash loans were discovered in the case of film financiers, which were awarded to various film production houses and others.In the case of film production houses, tax evasion is apparent, since the actual amount earned from the release of the films is much higher than the amount shown in the normal books of account.The unaccounted income generated by them is used for undisclosed investments as well as various undisclosed payments.Similarly, reports obtained by film distributors show a collection of unaccounted cash from the theaters.