I-T raids reveal 30-40% money in Sandalwood is in cash

Close on the heels of raids on actors and producers of Sandalwood, the Income Tax Department on Monday said that a part of money involved in the industry is in cash.

On the sidelines of a programme organised to mark ‘Investigation Day’ by Directorate General of Income Tax (Investigation), Karnataka and Goa, senior officials said that a meeting of stakeholders in the industry will be held soon.

Addressing media persons, Director General of Investigation B R Balakrishnan and Principal Director of Income Tax (Investigation) R Ravichandran said that 30-40% of the money involved in the industry is in cash.

Balakrishnan said, “Though the admitted undisclosed income is Rs 109 crore during the raids, our detection in the course of the investigation is going to increase surely. Our main objective is to ensure that people involved in movies or TV serials pay income tax. What we found is that a large number of people are not filing returns. We will be calling a meeting of stakeholders of the industry and to tell them to follow rules pertaining to the filing of the tax”.

Replying to a question, Balakrishnan said the investigation into the lavish wedding of former minister G Janardhana Reddy’s daughter, during the demonetisation period, is still on. “The investigation is still on. He (Reddy) was summoned and a statement was also taken. We will soon file a complaint in the case,” he added.

The officials said that in 2018 (till November), the directorate had conducted searches resulting in admission and detection of undisclosed income of Rs 4,038 crore and Rs 6,134 crore respectively with a total seizure of Rs 120 crore. “In many cases, searches have exposed a complex web of overseas entities floated by the assessees for laundering money abroad and investments made in foreign assets having ramifications under the Black Money Act (BMA). Notices under the BMA has already been issued to the assessees and prosecutions have been initiated,’’ a press release said.

The directorate has also made 84 provisional attachments, attaching properties worth Rs 563 crore under the newly set up Benami Prohibition Units in Bengaluru and Panaji. So far, 91 Benamidaars and 19 beneficial owners have been identified, the officials said.