Actor and director Prithviraj Sukumaran has received a notice from the Income Tax Department following recent Enforcement Directorate (ED) raids on the office of Gokulam Gopalan, the producer of the upcoming film L2: Empuraan. According to a report by The New Indian Express (TNIE), the notice seeks clarification regarding the actor’s earnings from three films released in 2022, in which he played key roles and also held the position of co-producer.
The IT Department confirmed that the notice was system-generated and dispatched to Prithviraj via email on March 29. These notices are typically triggered when routine income tax assessments reveal discrepancies or raise queries that require further explanation. The actor has been instructed to respond and provide clarification by April 29.
Officials said the inquiry specifically pertains to Prithviraj’s financial disclosures for the three films—Jana Gana Mana, Gold, and Kadavu. In all three projects, Prithviraj not only starred as the lead but also took on co-production responsibilities. Notably, reports suggest that he did not take any acting remuneration for his roles in these films and instead received compensation solely in his capacity as a co-producer. The IT Department is now scrutinizing this income arrangement as part of its standard verification procedures to ensure that the declarations are in compliance with income tax norms.
A senior tax official noted that this is part of a broader process to reconcile income declarations with actual earnings, particularly when the nature of payments and roles—such as co-producing and acting—may overlap or raise questions about valuation and reporting. “The notice is automatically triggered when discrepancies or queries are identified during routine income tax assessments,” officials explained.
This is not the first time Prithviraj has come under the radar of tax authorities. Back in 2022, his residence and office premises were searched by the IT Department due to inconsistencies discovered in his income declarations. That operation also included a probe into his production company as well as other businesses and individuals linked to him. Producers like Antony Perumbavoor, Listin Stephen, and Anto Joseph were also investigated as part of that wave of scrutiny into the Malayalam film industry’s financial activities.
According to The Hindu, the current notice has been issued as a follow-up to those earlier investigations. It is not directly related to the controversy surrounding L2: Empuraan, despite the timing aligning with recent ED activity around Gokulam Gopalan, the film’s producer. A source familiar with the matter confirmed, “It is reported that it has nothing to do with the L2 Empuraan controversy.”
The timing of the notice coincides with Prithviraj being in the public eye due to his involvement in L2: Empuraan, the highly anticipated sequel to Lucifer, which was a major success in Malayalam cinema. The new film features a star-studded cast including Mohanlal, Manju Warrier, Tovino Thomas, and Abhimanyu Singh. Prithviraj not only directs the film but also plays a central character, Zayed Masood.
However, L2: Empuraan has recently been the subject of controversy due to its depiction of events related to the 2002 Gujarat riots. Certain scenes in the film that reference the communal violence have sparked criticism from some quarters. These sequences are presented within the context of the backstory of Prithviraj’s character, which includes depictions of real-life historical events.
In response to the backlash, the filmmakers opted to make voluntary modifications. These changes included editing out specific references, changing a character’s name, and tweaking several dialogues to tone down the controversial aspects. The team made it clear that these alterations were made in order to avoid hurting sentiments and to keep the focus on the narrative rather than generate unwanted political debate or censorship hurdles.
Prithviraj has not yet issued a public statement regarding the IT notice or the specific queries about his earnings from the 2022 films. However, individuals close to the actor suggest that the matter is procedural and is being addressed through the appropriate legal and financial channels. The expectation is that he will comply with the deadline of April 29 and provide all necessary documentation and clarification.
The actor’s involvement in multiple aspects of filmmaking—acting, directing, and producing—has made him one of the most dynamic figures in Malayalam cinema today. However, this multifaceted role also places him in a complex financial position that attracts detailed scrutiny from regulatory authorities. As the IT Department continues to focus on income structures in the film industry, more such system-generated notices could be expected across the sector.
The IT Department’s increasing interest in the entertainment industry follows a pattern seen in recent years, where authorities have turned their attention to high-profile actors, producers, and production houses. The aim is to ensure full compliance with tax laws in an industry that often operates on flexible payment terms, profit-sharing models, and complex financing arrangements.
This case involving Prithviraj underscores the growing focus on transparency and accountability in the Indian film industry. As digital transactions become more prevalent and systems more automated, income declarations that deviate from expected norms or raise questions about structure or volume are more likely to trigger such system-generated notices.
For now, the spotlight remains firmly on Prithviraj, not just for his creative contributions to Malayalam cinema, but also for his financial dealings, which are under regulatory review once again. As the April 29 deadline approaches, how the actor responds could determine whether the case escalates or is resolved swiftly as a procedural matter.