Seven production houses including Karan Johar’s Dharma Production and Ekta Kapoor’s Balaji Telefilms has come under the Income Tax Department radar for suspicion that they have not been deducting enough tax while paying the extras in their films. The survey was conducted last week and below is what exactly happened.
Extra artists in a film play a pivotal part to form the background of each frame, be it the crowd or an anonymous character with just a single line in the film. And turns out the wage distribution of extras has become the point of disagreement between the IT department and the production houses.
Production house including Karan Johar’s Dharma, Ekta Kapoor’s Balaji telefilms, Ritesh Sidhwani-Farhan Akhtar’s Excel Entertainment, Vashu Bhagnani’s Pooja Entertainment, Dinesh Vijan’s Maddock Films, Luv Ranjan’s Luv Films, and Ajay Rai owned Jar Pictures have been put under questioning.
For decades, producers have been cutting 2 per cent as TDS (Tax Deducted At Source) from the wages that have been paid to the extras. But the set limit for the deduction of TDS is 10 per cent which is reportedly not being followed.
According to a report in Economic Times, a senior tax official has confirmed the raid but did not share any details he said that there is no decision taken as of yet.
Out of all seven houses suspected, Karan Johar’s Dharma Production is the largest with a 500 crore turnover in 2019 itself according to ET. Followed by Ekta Kapoor’s Balaji with 460 crore.