Film industry is another field where a lot of black money is involved. In a wikileaks cable in 2011, it got revealed that film industry welcomed it
welcomed the funds from politicians and gangsters who are looking to invest their ill-gotten funds. In 2012, in a sting operation by cobrapost also
showed film directors admitting that film industry uses black money to convert it into white. The IT act 1961 applies on the revenue sources of the
film industry. Parts of it regulate TDS on all payments to directors, actors, studios and distributors as per sections 192, 194C, 194J etc. By investing
their tax invaded money into films, people may earn returns on them and which may in turn be used to conduct other illegal activities as well, in addition
to tax losses to the country.
In 2012, a news website, Cobrapostís sting operation caught directors admitting on record that how Indian film industry is working for black money to white
conversion. Some of the big names in the industry have registered their companies outside India which is suspicious for Tax authorities.
Warnings, income tax declaration scheme, demonetisation, blocking routes to tax heaven countries, stress on e-transactions, adhaar linking and
GST implementation shows the intent and determination of the government to uproot black money and corruption. This incessant drive against illegal
money has left corrupts people in the film industry puzzled and vulnerable.