In a statement, the income tax department said that it has been conducting TDS inspections in order to check violations of not making proper deduction of taxes and not remitting them to government account after deduction.
Inspection at Vishal Film Factory had nothing to do with Mersal, says I-T department
Chennai - 24 Oct 2017 17:01 IST
The income tax (I-T) department has clarified that its recent raids on Vishal Film Factory, the production company owned by actor Vishal, had nothing to do with the recently released Mersal.
In an official statement that was released to the media, the I-T department said, "The income tax department, Tamil Nadu and Puducherry has been conducting TDS inspections in order to check violations of not making proper deduction of taxes and not remitting them to Govt. Account after deduction.
"This exercise has been on since the beginning of the current financial year throughout Tamil Nadu and Puducherry. So far, the income tax department has made such inspections in more than 400 cases in the region.
"In this process, the income tax department officials at Chennai conducted inspection at the office of one of the film producers in the city where there was specific information of violation of not remitting to the Government Account more than Rs50 lakh of tax deducted during the last financial year.
"As per provisions of the Income Tax Act, this amount should have been deposited in the government account within seven days from the end of the month of deduction. In the course of the inspection, the person concerned had admitted to the violation and promised to make the payment of the entire amount immediately.
"Certain reports have appeared in both print and electronic media linking the said action to a recently released Tamil film.
"The income tax department denies that the action taken against the film producer has anything to do with the said film.
"It is clarified that the action was taken in routine course on specific information and similar actions are being taken in several other cases. The income tax department wishes to convey to all the defaulters that they should comply with the provisions of making correct and proper deduction of tax and remitting the same within the permitted time in order to avoid any consequential actions (sic)," the department said.