Thalapathy Vijay faces setback as Madras HC upholds Rs 1.5 crore income tax penalty; 'Jana Nayagan' trouble continues

The Madras High Court has confirmed the 1.5 crore fine levied on actor Vijay by the Income Tax Department. The petition of Vijay has, therefore, been dismissed by the Madras High Court, stating that the penalty is a legal fine. The bench further stated that at no stage has there been any interference; hence, the matter does not require any interference by the court. Therefore, the stand of the Income Tax Department has been fully endorsed by the Court.

Why did the case begin?

The incident occurred in 2015, and in light of this, the income tax authorities searched Vijay's home and workplace, and they got hold of some papers. As reported by News 18, Vijay has disclosed that he made Rs 35.42 crore in the ITR for the fiscal year 2015-16, but the sum originating from the missing film 'Puli' is not included, which adds up to 15 crores. Therefore, the department considered it undisclosed income as well as concealed income. Consequently, the Income Tax Department levied a penalty of Rs 1.5 crore through an official order in June.

Vijay’s challenge and the court’s decision

Vijay challenged the penalty (under the Income Tax Act) in the Madras High Court. The high court had given an interim stay on the tax demand in the past. Vijay's counsel submitted that there is a delay in passing the order, and it should be quashed. The IT department argued that there is no delay, as it has passed under the prescribed time limit. After listening to the above arguments, the high court dismissed the petition of Vijay and upheld the penalty of Rs 1.5 crores. However, Vijay has the liberty to prefer an application before the Income Tax Appellate Tribunal also.

Also See: 'Jana Nayagan' censor row: Thalapathy Vijay starrer to end the legal battle, Madras HC to hear on February 10

'Jana Nayagan' censor issue

Meanwhile, Vijay’s film 'Jana Nayagan,' which is directed by H. Vinoth, continues to face uncertainty over its release. The film has been delayed due to pending censor certification and related legal issues. As a result, legal challenges continue for the actor on both the professional and personal fronts. Vijay was last seen in 'GOAT' which received mixed reviews.Get the latest entertainment updates from the Times of India, along with the latest Hindi movies, upcoming Hindi movies in 2026 , and Telugu movies.”