Actor and Tamilaga Vettri Kazhagam (TVK) president Vijay is involved in a significant income tax battle that has gained political significance as he gets ready for his election debut. The Madras High Court is scheduled to issue rulings on the matter on Friday.
The Income Tax Department’s penalty of Rs 1.5 crore, which it claims Vijay failed to voluntarily report an extra income of Rs 16 crore, is at the center of the issue. After income tax searches were carried out at the actor’s residence in 2015, the problem became apparent.
The Income Tax authority claims that the unreported income was related to Vijay’s compensation for the 2015 movie Puli, of which about Rs 5 crore was purportedly given in cash. According to the department, criminal prosecution under the Income Tax Act is justified because the income was not declared and was only discovered during the searches.
Vijay has appealed the penalty to the High Court, claiming that although the government may be able to impose a punishment, the penalty’s timing is illegal. His attorney argued that rather than being applied as late as June 30, 2022, the punishment should have been applied prior to June 30, 2019. They contend that the delay makes the penalty unsustainable and violates legislative deadlines.
However, the Income Tax Department has denied this allegation, claiming that the penalty was applied properly in compliance with the law and that there was no procedural error. The agency informed the court that, given the circumstances of the evaluation and the actions that followed the 2015 searches, the timetables were appropriately adhered to.
Despite the case’s technical character, its ramifications go far beyond tax law.
The ruling by the High Court coincides with a pivotal moment in Vijay’s public persona. The actor has consistently portrayed himself as a leader who will end corruption and establish clean governance in Tamil Nadu since formally founding his political party and declaring his desire to get involved in politics.
Additionally, he has presented his foray into politics as a sacrifice, giving up a rich film career at the height of his fame.
In light of this, both supporters and political watchers are closely monitoring the case’s result. A decision in his favor would support his claim of integrity as he moves from the film industry to politics, while a decision against him could give adversaries more reason to challenge his moral authority and anti-corruption stance.
The case is rapidly being viewed as an early litmus test as the High Court is ready to issue its ruling, not just for legal interpretation but also for Vijay’s attempts to establish political legitimacy.
