Tollywood town bigwigs under taxmen’s radar 

Income Disclosure Scheme 2016

• With T-town film boasting of a turnover of 800 crore a year, it has come under the scanner of Income Tax sleuths
• IT officials hold a meet with tinsel town biggies

Hyderabad: The T-town’s excessive bragging of annual turnover of Rs 800 crore has attracted the attention of officials of the Income Tax Department. Consequently, the IT officials startled the T-town stars, directors and bigwigs by convening a meeting with the latter at Film Nagar Cultural Club on Wednesday.

The meeting is aimed at assuring the film fraternity that the scheme promises immunity from prosecution under various IT and Wealth Tax Acts. The industry sources expect that some stars and directors could take advantage of it. According to industry sources, top T-town stars are paid anywhere between Rs 10 and Rs 15 crore a film, followed by top directors who draw pay between Rs 8 and Rs 12 crore a film and some producers are pumping in Rs 50 to Rs 90 crore per film.

The Income Tax Department is bound to look into their files, if they have not disclosed these details in their IT returns. “PM Modi is determined to curb black money, so it's better if Telugu stars, directors, actresses and producers reveal their undisclosed income and assets under the new scheme and lead a peaceful life or else it will be a tough time for violators,” warns producer C N Rao.

According to another industry source, remunerations of a few stars and directors are paid 70 per cent in white and 30 per cent in black, which could attract the IT sleuths and producers who have reportedly made films by investing Rs 50 to Rs 90 crore a film will also come under their scanner. “Few stars and producers are hyping their films by declaring hundreds of crores as box office collections to boost their films, but indeed, it could go against them.

In fact, few inexperienced producers have sent T-town budgets haywire by paying double digit salaries to stars, directors and are making films with unprecedentedly high budgets by ruining the industry,” lamented producer Prakash Reddy. Summing it up, another producer N Padmini, who is also secretary, Producers Sector, Telugu Film Chamber of Commerce felt that it is high time that fancy remunerations and budgets were moderated since T-town is losing more money than gaining these days.

“Remunerations have hit sky-high and should come down; otherwise industry will be in doldrums. With just 10 per cent success rate of 120-odd films made every year, losses to the tune of hundreds of crores of rupees are suffered by distributors and exhibitors. Even some theatre lessees do their business on benami names to avoid service tax, which is unfortunate” she concluded.

By BVS Prakash