The ascertaining of taxable income for a film producer is not easy, as the revenue starts accruing or coming only on the completion of the film production and releasing the same in theatre or the OTT platforms. Deductions which are Permissible Film Production – The failure to comply with the same shall attract a penalty of INR 100 per day of default. – As per Rule 121A of the Income Tax Rules the producer shall furnish such statement of income within 30 days from the closing of a financial year ruing which the production of such film was carried on or within 30 days from the date of completion of the film, whichever is earlier. – This shall include all the necessary details pertaining to payments in excess of INR 50,000 made or due from such producer to any person who is engaged by him in the production of the film in any role. – The producers of the films which are made in India, shall furnish a Statement of Income to the Income Tax Authorities in accordance with section 285B of the Income Tax Act. Hence, they are expected to do the following discussions made in this article: Submissions to be made by Producers And this increases their tax liabilities as well. So, the producers are the ones who are majorly investing in the production of the films with the expectation of earning more returns. The insurance companies also find it easy to provide covers to the films against any loss which might arise during the shooting of the film. Due to this, financial institutions and banks find it easier and more viable to fundor provide loans to such production houses when compared to prior times. And this industry and film production is having a more organized corporate-like structure currently where most of the producers are registered and functioning like corporate entities rather than individuals funding the movies and their production. Film Industry was given its standing as an “industry” back in 2000 and ever since there were various measures taken up by the government for liberalizing the regulations in the film production and financing of the same. It has also provided some of the finest arts and artists to the country by giving them immense opportunities and even taking them to an international level. The film industry is one of the major industries providing entertainment to the Indian residents for many a year.
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