Table of Contents
- Why Big B’s Tax Filing Made News
- Income Sources for Celebrities Like Amitabh
- Tax Structure for High-Income Individuals in India
- How Much Tax Do Celebrities Really Pay?
- Perks, Endorsements, and Their Tax Treatment
- Celebrity Tax Planning vs. Regular Salaried Planning
- Conclusion
- FAQs
1. Why Big B’s Tax Filing Made News
According to reports from major financial outlets, Amitabh Bachchan, one of India’s most respected actors, paid over ₹120 crore in income tax for the financial year 2024–25. With earnings exceeding ₹350 crore, this payment puts him at the top of India’s celebrity taxpayer list.
This isn’t the first time the superstar has led the charts — but it opens the door to a more interesting question: How are celebrities taxed, and what can we learn from their tax structure?
2. Income Sources for Celebrities Like Amitabh
Top-tier celebrities earn from a diverse mix of income streams, which include:
- Acting in films and series
- Brand endorsements
- TV shows (e.g., KBC)
- Digital content rights and reruns
- Public appearances and brand launches
- Production houses or partnership firms
- Investments in startups or real estate
- Social media monetization (indirect)
Each of these sources attracts different tax treatment under the Income Tax Act.
3. Tax Structure for High-Income Individuals in India
Amitabh Bachchan is taxed under the new or old tax regime, depending on deductions. Here’s how high-income earners are taxed under the old regime:
| Income Slab | Tax Rate |
|---|---|
| Above ₹5 crore | 30% + 37% surcharge + 4% cess |
| Effective Tax Rate | ~42.74% |
So, for a ₹350 crore income, the effective tax works out to over ₹120 crore — completely in line with the law.
4. How Much Tax Do Celebrities Really Pay?
While some celebs form private limited companies or LLPs to manage their income (which allows more flexibility), most endorsement and acting fees are taxed as professional income under Section 28.
They can claim:
- Expenses for stylists, PR teams, travel
- Rent for studios/offices
- Staff salaries
Still, with surcharges and limited deductions at high slabs, top celebs like Amitabh often pay over 40% in effective taxes.
5. Perks, Endorsements, and Their Tax Treatment
When a celebrity receives free luxury goods or vacations, these could be treated as perquisites, taxable under:
- Section 28(iv) (value of benefit received in business)
- Section 194R (TDS on freebies > ₹20,000)
If a brand provides a luxury car or resort stay as part of an endorsement, TDS applies and the benefit must be shown in the return.
Even product barter deals in social media posts are now under tax radar.
6. Celebrity Tax Planning vs. Regular Salaried Planning
Unlike salaried individuals who claim Section 80C, HRA, and other deductions, celebrities plan their taxes via:
- Income splitting via LLPs or family trusts
- Professional income vs. capital gains
- Depreciation on studio equipment, cameras, sets
- Carry forward of business losses
However, everything must be properly documented, and the risk of scrutiny is high. Celebrities are frequent targets of IT raids due to lifestyle vs. declared income mismatches.
7. Conclusion
Amitabh Bachchan’s ₹120 crore tax bill may sound staggering, but it reflects the growing transparency and compliance among top Indian celebrities.
For regular taxpayers, it’s a reminder that:
- Diversified income requires strategic tax planning
- Freebies and perks may be taxable
- Income visibility means higher compliance expectations
As the Indian tax system becomes more AI-driven, celebrity or not, everyone’s numbers must add up.
8. FAQs
Q1. Why did Amitabh Bachchan pay ₹120 crore in taxes?
He earned over ₹350 crore from various sources like films, TV, endorsements, and production ventures. This placed him in the highest tax slab with surcharges.
Q2. Are celebrity gifts taxable?
Yes. Freebies, endorsements, and benefits received are taxable under Section 28(iv) or 194R.
Q3. Can celebrities claim deductions?
Yes, they can claim business-related deductions like office rent, PR expenses, staff salary, and more — but they cannot misuse salaried deductions unless employed by a company.
Q4. How are endorsement earnings taxed?
As professional income. If routed through a company or LLP, it may be taxed differently.
Q5. Is this the highest tax payment by an Indian actor?
Possibly. While others like Akshay Kumar and Salman Khan are known for high payments, ₹120 crore is among the largest reported individual tax figures.
Stox N Tax 
Leave a comment