Vijay Faces Fresh Setback As Madras High Court Upholds Rs 1.5 Crore Tax Penalty – What This Means For The Jana Nayagan Actor?

On

6 February, actor-turned-politician Vijay has hit a fresh legal roadblock as the Madras High Court upheld a Rs 1.5 crore tax penalty imposed by the Income Tax Department. The Rs 1.5 crore penalty stems from Vijay’s disclosure of an additional Rs 15 crore income for the financial year 2015-16, largely connected to his 2015 big-budget film Puli, which included untaxed cash payments. The case has since seen multiple appeals, writ petitions, and interim orders over the years. The judgment comes at a challenging time for Vijay, whose highly anticipated film Jana Nayagan is already facing delay.

What Does The High Court Order On Rs 1.5 Tax Penalty Case Mean For Vijay?

The Madras High Court on Friday dismissed a plea filed by Vijay, upholding a Rs 1.5 crore penalty imposed by the Income Tax Department over undisclosed income of Rs 15 crore for the financial year 2015–16. The verdict, delivered by Justice Senthilkumar Ramamoorthy, that the show-cause notice issued by the tax authorities was within the legal timeframe under Section 263 of the Income Tax Act.

While this setback may create short-term challenges,, the court allowed Vijay the option to approach the Income Tax Appellate Tribunal (ITAT) to contest the notice and penalty on grounds other than the limitation period.

What Is Vijay's Rs 1.5 Crore Income Tax Case About?

The case traces back to 2015 when the Income Tax Department conducted a search and seizure at Vijay’s premises. During the investigation, records revealed that Vijay had received Rs 4.93 crore in cash and Rs 16 crore through cheques from producers of his 2015 film Puli. While taxes were deducted on cheque payments, no tax was deducted on the cash portion.

Vijay admitted receiving the funds and later declared the additional Rs 15 crore in his 2016–17 income tax return. The department rejected certain claims and issued an assessment order fixing his taxable income at Rs 38.25 crore.

This ruling comes at a time when Vijay’s next film, Jana Nayagan, is already delayed due to legal and censorship issues. Jana Nayagan, directed by H Vinoth, is Vijay’s upcoming film before his full-fledged political entry. Inspired by the storyline of National award-winning film Bhagavanth Kesari, it was originally scheduled for release on January 9, 2026, but now faces indefinite delays. The film marks a significant chapter in Vijay’s career as he transitions fully into politics.