After the introduction of the GST system, the widespread adoption of TDS, and the increase in cases and arrests, black money in Tollywood has reduced by 90%.
It’s now rare to find cash transactions even for one or two lakhs in production companies.
Online transactions have become the norm, and even distributors use NEFT regularly. Even financiers now offer loans strictly through accounts.
In this context, why should producers fear IT raids? Are black money transactions still happening? Yes, but they are limited to two payments- the remuneration of heroes and directors.
Directors, particularly the big shots who earn tens of crores to more than hundred, often need to adjust payments through black money.
As for the heroes, producers say that regardless of whether they earn Rs 4 Cr or Rs 50 Cr or more they must pay half of the amount in black money.
To manage this, producers have to find the black money, or else they won’t have enough for the payment.
On top of that, they must pay interest also in black amount every month. This means they must resort to black money to cover the interest on advances to heroes every month.
Despite frequent reports of raids on producers, it is interesting that there have been no news of raids on heroes' homes. Producers lamenting on this as well.
