Income Tax Day Special Article
Summary of the article– Calcutta, Films, and Income tax
Calcutta, now Kolkata, has been an epicenter of creativity. The entertainment industry is no exception. The author has researched pre 1947 film production in Calcutta, to bring out important events, which may interest finance professionals. In the second part of the article, he has quoted some income tax related issues of great artists of the bygone era.
It is light and delightful article for the much-burdened finance professionals and others who want to know interesting events of our financial history.
Calcutta, Films, and Income tax
History is dependent on the new generation to write a new chapter- LaMelo Ball, American Basketball player.
We all know that James Wilson had written an entirely new chapter of Indian financial history in 1860 by introducing the modern budgeting system. Calcutta (now Kolkata) became the birthplace of Indian Income tax. Few people know that as the capital of undivided India, Calcutta, reigned supreme as a production centre for the Entertainment industry, for a long period. Even after the production base was shifted to Bombay (now Mumbai), the centre stage was dominated by Calcutta’s art connoisseurs. In this article we will see the growth of entertainment industry at Calcutta and the love-hate relationship between films and income tax. Such interesting references to income tax in the films, film literature and biographies of some eminent personalities of yesteryears were found after much research.
The history of cinema in Bengal dates to the 1890’s, when the first ‘bioscope’ was shown in theatres in Calcutta. Within a decade, Hiralal Sen, paved the way by setting up the Royal Bioscope Company, with popular shows at the Star Theatre, Minerva Theatre, Classic Theatre, and other places.
Around 1918, the British implemented stricter censorship rules. ‘Empire Films’ was established to promote the production and distribution of British and colonial films. The Government set up an ‘Indian Cinematograph Committee’ (1927–28) to determine the future course of cinema related policies.
The Committee[1] consisted of, Shri T. Rangachariar, Vakil, Madras High Court; Sir Ebrahim Haroon Jaffer; Colonel J. D. Crawford, K. C. Neogy, Vakil, High Court, Calcutta; A M Green, ICS, the Collector of Customs and Member of Bombay Board of Film Censors; J Coatman, Director of Public Information and G G Hooper, ICS, as Secretary to the Committee. K C Neogy became a Union Minister of Relief and Rehabilitation and Chairman of the First Finance Commission after 1947. He served as Finance Minister for nearly a month, after K Shanmukham Chetty resigned as FM and before John Mathai took over.
The consultations/enquiries took place all over India with participants answering a set of questionnaires. The interviewees included Mahatma Gandhi, who put forth a negative view stating that ‘The evil that it has done and is doing is patent. The good if it has done any at all has yet to be proved.’ The report was finally released in 1928. Chairman Rangachariar emphasised the role of cinema as an instrument to promote India’s popular cultures. The report called for the establishment of tax and concessions, alongside the formation of film schools and film archive. The committee theoretically supported censorship against communal rhetoric.
Dhirendra Nath Ganguly established Indo British Film Co, in 1918. However, the first Bengali Feature Film, ‘Billwamangal’, was produced in 1919, by Madan Theatre. The Madan Theatre Production- ‘Jamai Shasthi’ was the first Bengali talkie. A long history has been traversed since then, with stalwarts such as Satyajit Ray, Mrinal Sen and Ritwik Ghatak who earned international acclaim for their creativity in movies.
The creation of the major studios in Madras, Calcutta, Lahore, Bombay, and Pune in the 1930s accelerated the development of Indian film industry. Cinema attracted creative people of all castes, religions, regions, and social classes, setting up an example of social harmony. The studios, like Bombay talkies, Prabhat Film Company in Bombay, New Theatres in Calcutta, and Gemini and Vauhini in Madras, popularised the desi genre of cinema, interwoven with emotions and music.
One of the earliest studios in Calcutta was the East India Film Company, started in 1932 by R L Khemka. He produced films in Hindi, Urdu, Bengali, Tamil and Telgu. Debaki Bose, a versatile artist as well technician, made innovative use of sound, light and music. He directed ‘Chandidas’ in 1932; the first Indian film, noted for its breakthrough in sound recording. He was the first Indian to receive an international award for his films.
Tollywood was the very first Indian Hollywood. This adjective was coined in a 1932 article written in the ‘American Cinematographer’ by Wilford E. Deming. He was an American engineer, involved in the production of the first Indian ‘Talkie’. Tolly(gunge) where he was based, rhymed with ‘Holly(wood)’ from where he came. The adjective ‘Tollywood’ went on to inspire the name ‘Bollywood’ (as the Bombay based Film industry), which in turn inspired many others similar names elsewhere in India. First Punjabi film, K D Mehta’s ‘Sheila (1935) was also released in Calcutta.
New Theatre films, particularly the 1935 classic ‘Devdas’ made by actor-director P C Barua, the zamindar of Gouripur, Assam, gave Indian cinema its recurrent theme- the love triangle. Others soon developed newer and dependable formulas like identical twins, lost and found kin etc. Bombay Talkies owned by Himanshu Roy and Devika Rani (a Tagore clan girl), produced ‘Achut Kanya’ (1936) starring Devika Rani and a reluctant film technician, Ashok Kumar, dealing with the evils of untouchability. Bombay Talkies made many popular movies, including Gyan Mukherji’s ‘Kismet’, based on ‘lost and found’ theme.
As a teenager, Jaddan Bai (1892-1949), moved to Calcutta and began recording ‘Thumris’, ‘Dadras’ and ‘Ghazals’ with the Columbia Gramophone Company. She also performed for radio and participated in music shows organised by princely states of Rampur, Bikaner, Gwalior, Kashmir, Indore, and Jodhpur. In 1932, she was offered a role in movie ‘Raja Gopichand’. The music was also composed by her. Later, she moved from Calcutta to Bombay (now Mumbai). By 1936, she established her own production company – ‘Sangeet Movietone’, writing, scoring, and directing films. Jaddan Bai highlighted the plight of courtesans in her movies. It reflects that she was far ahead of her time. After four films, ‘Sangeet Movietone’ went out of business due to high debts.
J.F. Madan was born into a Parsi family in Bombay in 1856. His father worked with the ‘Backbay Reclamation Company’whose stated purpose was to reclaim the land from sea from the tip of Malabar Hill to Colaba. Around 1865, land prices fell, the company was liquidated, and family went almost bankrupt. The young Madan abandoned school, and joined a drama club ‘Elphinstone Nautanki Club’, (headquarters in Calcutta) as a prop-boy in 1868.
By 1875, this drama club turned into a professional theatre company staging shows all over India. In 1883, he moved to Calcutta and had a successful supply business with army cantonments. He bought ‘Elphinstone Nautanki Club’ and Corinthian Hall. In 1902, his ‘Elphinstone Bioscope Company’ began shows in a tent in Maidan, Calcutta with imported equipment. Soon he began producing and exhibiting several silent movies. He also bought Alfred Theatre in 1905, established ‘Elphinstone Picture Palace’ (now Chaplin Cinema) in 1907 and ‘Palace of Varieties’ (now Elite Cinema). He was the largest importer of American films at that time. His ‘Elphinstone’ competed globally, to film the historic 1911 Delhi Durbar of King George V. Elphinstone merged into Madan Theatres Limited in 1919 and produced the first Bengali feature film, ‘Bilwamangal’, screened in the Cornwallis Theatre (now Sree Cinema). The Electric Theatre (now Regal Cinema), Grand Opera House (now Globe Cinema) and Crown Cinema (now Uttara Cinema) were all owned by Madan Theatres. He reached a peak in the late 1920s when his company owned 127 theatres in British India and controlled half of the country’s box office collections. He was perhaps the ‘Manmohan Desai’ and ‘PVR’ rolled into one person of his time. His films had the best technical sophistication available, and best of the foreign directors. Mythological storylines and grand sets ensured good returns. J F Madan was felicitated by the Government and in 1923, he passed away. Till 1937, Madan Theatres produced several landmark films.
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| India’s first Cinema Hall- Chaplin, photo courtesy Wikipedia | Devika Rani, photo courtesy Filmindia 1939 | J F Madan’s house in Lenin Sarani, Kolkata- Courtesy-madantheatres.com/Ashley Coates |
Dhiren Ganguly was born in Calcutta in 1893. He studied in Shantiniketan. In 1915, Ganguly released a book on make-up techniques called ‘Bhavki Abhibyakti’ (1915, Hindi & Bengali). He displayed mastery over makeup techniques. The police took his help to train CID officers in the art of camouflage. Ganguly formed the ‘Indo British Film Co’, with a former manager of Madan’s company. Their first production was ‘Bilat Ferat’ (1921), a silent comedy. In 1919, after ‘Jalianwala Baug’ massacre films were subjected to heavy censoring. Dhiren Ganguly shifted to Hyderabad, and under the Nizam’s patronage, formed the Lotus Film Company. In 1929, Ganguly returned to Calcutta and set up ‘British Dominion Film Company’. Ganguly was a professional and made films based on Tagore’s and Sarat Chandra’s stories. He also introduced actors like Debaki Bose and Pramathesh Barua. He died in Calcutta in 1978.
It is interesting to note that around 1860, only the names of tawaifs (dance girls) figured among the top women taxpayers in various Governmental records. At that time, when most women in India were illiterate, the tawaifs were skilled poets, authors, musicians, and dancers.
TAX WOES OF GAUHAR JAAN
Born on June 26, 1873, as Angelina Yeowar, Gauhar Jaan (1873 –1930) was an exceptional singer and dancer from Calcutta (Kolkata). She was one of the first performers to record music on 78 rpm records in India, released by the Gramophone Company of India. Gauhar Jaan dominated the first two decades of 20th century. She was blessed with a melodious voice and exceptional beauty. She recorded more than 600 songs in ten languages between 1902 and 1920 and popularised Hindustani classical music.
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| Gauhar Jaan, Courtesy Wikipedia | Madan Theater’s ad- courtesy Filmindia | Ashok Kumar, courtesy Filmindia |
In her final days, she moved to Mysore, where she was appointed as a ‘Palace musician’. When she received her first month pay in Mysore, Gauhar was a little puzzled to see an uncalled-for deduction. She sought the help of Ustad Barkatullah Khan, her guru in Calcutta. He informed her that this was the normal government procedure, the deduction was towards income-tax. She was not happy, as her meagre honorarium was further shortened by income tax[2].
Gauhar, once spent Rs 20,000 on a kitten’s birth had to manage living on Rs 500 per month, with her team. This tax deduction upset her. She would not accept things quietly. In a signed letter dated 24 September 1928, Gauhar Jaan wrote to the Durbar Bakshi of Mysore, requesting him to exempt her from the income-tax deduction, or to restrict the deduction to net payment to her share only[3].
Her letters were forwarded to the Finance department, the Huzur Secretary on 27 September 1928. The Huzur Secretary perused the documents and replied on the 18th of October 1928, refusing to grant her any exemption. He further directed to deduct Income tax of Rs 45-0-0 on free quarters allowed to her.’ Her other patrons in several places pressurised her to either vacate their residential premises or to pay rent, fearing queries from Income tax.
She died on 17 January 1930 in a Mysore hospital. Huzur Secretary enquired about the dues to her and against her. Bakshi’s office stated- ‘She was in receipt of a pay of Rs 500-0-0 per month in the ‘Sangeetha firka’ of this ‘Elakha’ and after deducting a sum of Rs 8-8-0 towards the payment of income tax, the net amount payable to her for the month of December 1929 was Rs 491-8-0. Out of Rs 491-8-0, a sum of Rs 250-0-0 was paid to Miss Gauharjan on the 15th instant to meet her expenses at the Hospital. Now a sum of Rs 241-8-0 was to her credit. Further, a sum of Rs 18-12-0 was payable to the City Municipal Council.
This was the sad end of a great artist, who proudly charged 101 gold guineas for her one concert. Somewhere, someone must still be listening to her famous thumri recorded in 1905- ‘Mere dard-e-jigar ki khabar hi nahin’!
THE SENIOR MEMBERS OF KAPOOR CLAN AND TAXES
The gossip machines in film magazines used to work overtime about the tax woes of the Kapoor clan. The famous actor Prithviraj Kapoor[4] had a great sense of self-respect and never accepted any money from his sons. Before his death, he had provided for all his treatment expenses and his income tax. Rishi Kapoor has also praised his liberal and kind approach in his autobiography. It has been written that he did not promote dealing in cash and declared his receipts honestly[5].
Raj Kapoor[6] had to face a search after his hit film- ‘Sangam’. Raj Kapoor had no idea where his papers were. It is said that he was not on talking terms with his wife. The income tax guys questioned the couple together and they were reunited.
The handsome actor Shashi Kapoor[7] faced the taxmen, when his twelfth-floor apartment in Atlas Apartments was in the custody of the income tax department. Also in 1982, taxmen scrutinized the accounts for his film ‘Junoon.’ Financially, his film ‘Ajooba’, an Indian-Soviet co-production, took a heavy toll in early nineties. It is said that his creditors and income tax authorities kept knocking him for this.
INCOME TAX AND ASHOK KUMAR
Ashok kumar (Kumudilal Ganguly) was born in a middle-class family in Bhagalpur, Bihar in 1911, later family shifted to Khandwa. His father was an advocate and wanted him to take up the same profession. Ashok Kumar studied B.Sc. and later law in Calcutta. His first film, ‘Jeevan Naiya’ was a success. Ashok Kumar was offered a job as’ Income tax inspector[8]. Here his salary would have been more than from ‘Bombay Talkies’ job. Film critics had called him a “chocolate hero” and Saadat Hasan Manto did not find much depth in his initial work. Soon, he overcame his guilt of refusing the tax inspector job and signed up film ‘Achhut Kanya’ (Untouchable Girl) opposite Devika Rani.
He commanded box office of his time. Roxy Cinema in Bombay showed only Ashok Kumar films for seven years at a row. In 1955, talking a famous film historian, he would say he wished he had become Income tax inspector. What pleasure he said it would have given him to summon the stars to his cubicle and shout at them for not paying their taxes.
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| Jeevan Naiya, 1936, Courtesy Wikipedia | Logo of Bombay Talkies, photo Courtesy Wikipedia | Ashok Kumar in 1938, photo courtesy Filmindia |
KISHORE KUMAR AND INCOME TAX
Kishore Kumar, the younger brother to Ashok Kumar, always had problems with money and the tax department. In the 1960s his tax problems had forced him do B grade films. When the then journalist Pritish Nandy visited him, he found some piles of badly kept files[9]. He asked about such documents. Kishore replied that these were his income tax records. Nandy was surprised as to why these were moth/rat eaten. To this Kishore replied that he uses them as pesticides. The rats die quite easily after biting into them. Nandy wondered what he would produce before the Income tax people. Kishore replied that he planned to produce dead rats, which are a delicacy in some countries. According to him, one could make money from dead rats, if had some enterprising spirit. It seems, he liked playing cat and mouse with the taxmen.
RAJESH KHANNA AND HIS TAX ISSUES
Rajesh Khanna’s care-a-damn attitude that had got him into trouble with the income tax authorities. His financial condition worsened and there were murmurs that he was on the lookout to sell ‘Aashirwad’, his dream house. The news that the income tax department had slapped a notice for arrears of over a crore and a half rupee on him finally made it all too true[10]. ‘Aashirwad’ was said to be attached by the tax authorities, so Rajesh Khanna stayed in his office on the Bandra-Linking Road[11].
DILIP KUMAR AND INCOME TAX
In his biography, he acknowledged his friendship with ‘Salve Sahab’ (N K P Salve), as a good Chartered accountant. He states that- it never occurred to him that they would be brainstorming to fight a legal battle someday. A search was conducted upon a relatively unknown producer, where an entry of payment of a sum of Rs 10 lakh was found against the actor. The assessment could result in a large tax demand, but also penalties equal to the escaped income, and a possible prosecution for evasion of tax[12].
Dilip Saheb’s trusted persons advised him to contest the appeal in the Income Tax Appellate Tribunal[13]. It is said that Shri Harish Salve’s first tax case was Income Tax Officer vs Dilip Kumar alias Yousuf Khan. Case was heard by the tribunal on a day-to-day basis in June 1975. The team was headed by leading tax advocates. Shri G. N. Joshi, Dilip Sahab’s trusted accountant helped them. The Department’s representative tried hard to put across the case to the Tribunal. The great actor stated that Salve Sahab stood by me and gave me the encouragement and fillip to succeed in convincing the tax tribunal that I was no wilful tax evader.
GURU DUTT’s TAX TROUBLES
Guru Dutt was a creative person but as the head of his company he was responsible for its finances. The running cost of the company including the salaries of the staff was around Rs 40,000 per month—a huge amount in those times. Matters concerning the inflow of the cash and income tax issues used to burden his creative mind. He was a generous man and took great care of his staff[14].
It is said that he tried to commit suicide once and later narrated it to Bimal Mitra. Guru Dutt cited reasons as his father’s demise, some income tax problem, and certain other disturbing personal episodes[15].
Another interesting incident has been described. Guru Dutt did not like black market dealings. He found a way to save tax without getting involved with black money payments to artists. For instance, an artist’s fee is 3 lakhs. Guru Dutt would pay the artist Rs 50,000. during the making of the film, and the balance of two and half lakhs would become, payable in ten annual instalments of Rs 25,000 each. Guru Dutt would place the balance of two and half lakhs in the LIC in the name of the artist This was accepted by the tax authorities. The government could use the money, and every year the artist would receive Rs 25,000 and pay tax on it. Many artists had adopted this procedure and were paid in the same way.
The circumstances leading to his death are not very clear. It has been stated that around post-midnight, he came bock accompanied by his income tax consultant, Mr. Gole. He told Abrar Alvi, his trusted director to have his dinner with others. He said- “I can’t. I am feeling very tired. I would like to retire.” And with that he closed his bedroom door. Others did not know that Guru Dutt was going to retire for ever[16].
MEENA KUMARI AND TAXES
In the biography of Meena Kumari, it has been stated that – My heroine died a debtor[17]. It has been further stated that- ‘Currently she owes five lakh rupees to the Government of India, and all her property has been confiscated. In legal language all of Meena Kumari’s worldly possessions are ‘attached property’. Unless the income tax authorities waive their dues or unless some money is found, my heroine’s philanthropic intentions will never get off the ground. The money realized from her property will go to the taxman’. It is said that Nargis Dutt wrote to Prime minister,’ requesting waiver of Meena’s income tax dues.
SABSE BADA RUPAIYYA
It is said that Mehmood’s ‘Sabse Bada Rupaiya’ (1976) was based on Tolaram Jalan, an avid financier. He purchased Filmistan from Sashadhar Mukherjee and Ashok Kumar in the 1950s. According to a story told in Vijay Anand’s biography, Tolaram Jalan had financed some films with the sole intention of making a flop in order to claim losses before income tax authorities. It is said that as a financier, Tolaram Jalan bankrolled over 100 films this way. In some of such projects, artists were also not paid.
KHWAJA AHMED ABBAS The great author (wrote 74 books), and script writer of several hit Hindi films, including Raj Kapoor’s ‘Awara’ and ’Bobby’, has described his experience of income tax in his autobiography[18] as follows- “A birthday is like the end of the financial year which brings you the dreaded registered letter from the income tax department. You can ignore that letter for some time, but you cannot escape it. Sooner or later, you have to prepare and file your income tax returns. On every birthday you also have to make a balance sheet of your life and submit it to the judgment of your God or your conscience”.
In 1998, cinema was accorded the status of an industry to provide good finance. By this step, film industry earned much-needed eligibility to seek funds from legitimate places. It helped in easing life of producers a bit.
The only positive film I remember about Income tax is ‘Raid’. A 2018 movie directed by Raj Kumar Gupta, with Ajay Devgan in the lead role, was dedicated to the unsung brave and honest Income tax officers who keep wheels of our country’s economy moving. Movie was absorbing with powerful acting, dialogues, humour, emotion, realistic plot, and techniques making it almost a thriller. It was claimed that this film was based on a story of India’s longest raid that happened in 1981. To sum up, the money and the taxes are the hot topics with film-wallahs, who owe plenty of both.
[1]Report of The Indian Cinematograph Committee 1927 1928- By- Government of Indian
[2] My Name is Gauhar Jaan- Vikram Sampath, 2012
[3] ‘My Name is Gauhar Jaan- Vikram Sampath, 2012
4. The Kapoors- The First Family of Indian Cinema by Madhu Jain, Viking 2005
[5] Khullam Khulla-Rishi Kapoor uncensored with Meena Iyer
6,7 The Kapoors- The First Family of Indian Cinema by Madhu Jain, Viking 2005
[8] Bollywood A History by Mihir Bose, Roli Books.
[9] Bollywood A History by Mihir Bose, Roli Books.
[10] Dark Star- the Loneliness of Being Rajesh Khanna by Gautam Chintamani
[11] Rajesh Khanna-the Untold Story of India’s First Superstar by Usman Yasser
[12] Dilip Kumar- the Substance and the Shadow- an Autobiography- as narrated to U Nayar- Hay House
[13] Dilip Kumar Substance and Shadow- U Nair, Hay House India, 2014
[14] Guru Dutt- An Unfinished Story, by Yasser Usman
[15] Gurudutt- A Life in Cinema, -N M Kabir, OUP, 1996
[16] Guru Dutt-1925-1965- A Monograph by Firoze Rangoonwalla
[17] Meena Kumari- The Classic Biography by Vinod Mehta, Harper Collins
[18] I Am Not an Island-An Experiment in Autobiography Khwaja Ahmad Abbas, Vikas Publishing House
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