Producer S Naga Vamsi recently said that the Income-Tax Department doesn't seek explanations from film producers based on the publicized numbers of their movies. So, even if the claimed box-office number is Rs 150 Cr, the tax authorities are not going to exert pressure in any manner.
"Earlier, they used to quiz the producers. In recent years, they have realized that those publicized figures don't align with reality. If they have any doubts, they seek clarification from us. We don't face any issues otherwise," Naga Vamsi shared. He clarified that he has never claimed a flop film as a hit. "I have never done that in my career," Naga Vamsi, who heads Sithara Entertainments, shared.
Production houses often advertise huge gross collection figures for marketing momentum. Tax authorities cross-check these publicly claimed numbers against actual net income, theater rentals, and GST filings.
Naga Vamsi, who awaits the theatrical release of Vishwanath And Sons on August 14, justified the inflation of BO numbers. "If those numbers make the fans happy, why not? No "poster" figure is authentic. Everyone in the industry does it," he added, putting the exaggeration at 10%.
