Seven production houses including Karan Johar’s Dharma Production and Ekta Kapoor’s Balaji Telefilms, Farhan Akhtar and Ritesh Sidhwani’s Excel Entertainment among others have come under the scanner of Income Tax Department for reportedly deducting less than required tax before paying extras their wages. The IT department reportedly conducted a survey on seven such Bollywood production houses.
Economic Times reports that the film houses have been deducting two percent TDS, instead of 10 per cent before paying the extras.
Those under the scanner are Karan Johar’s Dharma Productions, Ekta Kapur’s Balaji Telefilms, Farhan Akhtar and Ritesh Sidhwani’s Excel Entertainment, 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.
Quoting a senior official from the IT Department, the report confirmed that the survey was indeed conducted, but 'no decision has been taken' post that.
As of now, none of the production houses has responded to the reports so far.
Of these Bollywood houses, Karan Johar's Dharma is the largest production house with a turnover of just under Rs 500 crore in FY19. Following Dharma are Balaji and Pooja with a reported turnover of Rs 460 crore Rs 35.57 crore in FY19.
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