Submission of statements by producers of cinematograph films or persons engaged in specified activity
[Section-507 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 507(1) of Income Tax Act 2025
507(1) Any person carrying on the production of a cinematograph film or engaged in any specified activity, or both, during the whole or any part of any tax year shall, furnish within such period, a statement in such form and in such manner, as prescribed, to the prescribed income-tax authority.
Section 507(2) of Income Tax Act 2025
507(2) The statement referred in sub-section (1) shall contain particulars of all payments of over fifty thousand rupees in the aggregate made by him or due from him to each such person as is engaged by him in such production or specified activity.
Section 507(3) of Income Tax Act 2025
507(3) In this section, “specified activity” means any event management, documentary production, production of programmes for telecasting on television or over the top platforms or any other similar platform, sports event management, other performing arts or any other activity as the Central Government may, by notification, specify.
FAQs on Section 507 of Income Tax Act 2025
Who is required to submit a statement under Section 507(1)?
Any person carrying on the production of a cinematograph film or engaged in any specified activity, or both, during any part of a tax year is required to submit the prescribed statement.
What is the due date for submitting the statement under Section 507?
The specific due date is to be notified through prescribed rules; the Act itself refers to submission “within such period as may be prescribed.”
To whom must the statement be furnished?
The statement must be furnished to the prescribed income-tax authority.
What form and manner should the statement be in?
The form and manner will be as prescribed by the relevant rules notified under the Income Tax Act, 2025.
What details must be included in the statement under Section 507(2)?
The statement must contain particulars of all payments exceeding fifty thousand rupees in the aggregate made by the person or due from them to each individual engaged in the production or specified activity.
What is meant by “specified activity” under this section?
“Specified activity” includes event management, documentary production, production of programmes for telecasting on television or OTT platforms, sports event management, performing arts, and any other similar activity as notified by the Central Government.
Does the requirement apply even if the activity was carried on for part of the tax year?
Yes, the requirement applies if the person was engaged in such activity during any part of the tax year.
Are both individuals and companies required to submit the statement?
Yes, Section 507 applies to “any person,” which includes individuals, companies, firms, and other entities engaged in the specified activities.
Is there a monetary threshold for reporting payments?
Yes, only payments of over fifty thousand rupees in the aggregate to each person need to be reported.
What happens if the statement is not submitted?
While Section 507 does not specify penalties, non-compliance with reporting obligations under the Act may attract penalties as per the relevant provisions of the Income Tax Act, 2025.
Can the Central Government expand the scope of “specified activity”?
Yes, the Central Government is empowered to notify additional activities as “specified activity” under Section 507(3).
Are payments in cash and bank transfers both included in the aggregate payment threshold?
Yes, all modes of payments are included in determining the aggregate payment threshold of fifty thousand rupees.
Does the term “engaged in” cover contractual and freelance engagements?
Yes, anyone engaged in the production or specified activity, including on a contractual or freelance basis, would be covered.
Are payments to suppliers or service providers also required to be reported?
Only payments to persons engaged in the production or specified activity are required to be reported, not general suppliers unless they are involved in the specified activity.
Is a separate statement required for each film or event?
The Act does not specify this; the prescribed rules will provide further clarity on this aspect. However, if the same entity handles multiple productions or events, cumulative disclosure in a consolidated statement may be expected.
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