Bollywood's major production houses including Karan Johar's Dharma Productions and Ekta Kapoor's Balaji Telefilms came under the scanner of the Income Tax Department. The IT Department conducted a survey of these production companies to check if they were deducting taxes from the wages being paid to the many extras they used in their films.
The Hindi film industry has been deducting 2% tax from the wages paid to extras for decades now. This has been a point of contention with the IT Department, which is of the opinion that extras are 'skilled' people and therefore they should be taxed at 10%.
According to a report by Economic Times, other production houses which were surveyed by the IT Department were Ritesh Sidhwani and Farhan Akhtar's Excel Entertainment, Dinesh Vijan's Maddock Films, Luv Films by Luv Ranjan, Ajay Rai's Jar Pictures. The so-called big celebrities of the industry are taxed at 10% as they are considered skilled artists.
As of now, no final decision has been taken regarding taxation for extras.