Income Tax Department Surveys Dharma Productions, Balaji Telefilms And Other Productions Houses

In almost all films, besides the main lead cast, there is a myriad of other people who form a crowd in the film. Now, the question that arises here is how do they get their payment? Well, most of them are paid in cash so that there is no tax applied to the transaction! And this facet has now struck the income tax department and therefore they will be surveying some big production houses to check whether there are any hidden expenses on which taxes are not being paid properly.

According to a leading daily, the IT department suspects that some leading production houses of the industry are not levying enough tax while paying the extras. Last week, it also conducted a survey on seven of them, including Karan Johar's Dharma Productions, Ritesh Sidhwani and Farhan Akthar's Excel Entertainment, Dinesh Vijans Maddock Films and Ekta Kapoor's Balaji Telefilms.

The extras in question just pay a TDS of 2 per cent as opposed to a 10 per cent which they should be paying. The star and other artistes of the films pay 10 per cent taxes because they are ‘skilled artistes’.

However, there is no confirmation about the reformation of the tax system as yet. A source revealed to the daily that no decision has yet been taken on that front.

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