BH CORRESPONDENT, New Delhi: The Income Tax Department has turned its lens towards several production houses. Karan Johar’s Dharma Production, Ekta Kapoor’s Balaji Telefilms, Farhan Akhtar and Ritesh Sidhwani’s Excel Entertainment are among the seven houses upon whom income tax officials have reportedly conducted a survey.
The alleged reason for such action is that the production houses have been paying less than the desired tax to the extras – people who have insignificant and minor roles in a film, which may include faces in the crowd, vehicle drivers, shopkeepers or even characters with a single dialogue.
The allotted slot for tax deducted at source (TDS) has been set at 10% but the houses have allegedly been deducting only 2% tax.
Though a senior IT Department official confirmed the undertaking of the survey, no action has yet been taken regarding this matter. None of the production houses have issued comments yet.
The other houses which fall under the survey are Vashu Bhagnani’s Pooja Entertainment & Films, Dinesh Vijan’s Maddock Films, Luv Ranjan and Ankur Garg’s Luv Films and Ajay Rai’s Jar Pictures.
For FY19, Karan Johar’s Dharma Production had a turnover of nearly Rs. 500 crore, with Ekta Kapoor’s Balaji Telefilms coming a close second with a turnover of Rs. 460 crore.