Chapter XXIII - Miscellaneous
Section 507
Section 507: statements by film producers and specified-activity persons
Section 507 requires anyone producing a cinematograph film, or engaged in a defined list of "specified activities" such as event management or OTT content production, to report payments made to the people they engage for that work.
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Need advice on Section 507?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Any person carrying on the production of a cinematograph film or engaged in any specified activity, or both, during the whole or any part of any tax year shall, furnish within such period, a statement in such form and in such manner, to the prescribed income-tax authority as may be prescribed.
(2) The statement referred in sub-section (1) shall contain particulars of all payments of over ₹50000 in the aggregate made by him or due from him to each such person as is engaged by him in such production or specified activity.
(3) For the purposes of this section, the expression “specified activity” means any event management, documentary production, production of programmes for telecasting on television or over the top platforms or any other similar platform, sports event management, other performing arts or any other activity as the Central Government may, by notification, specify.
Introduction
A person producing a cinematograph film or carrying on a listed specified activity during any part of a tax year must furnish a prescribed statement to the prescribed income-tax authority.
The statement covers payments exceeding ₹50,000 in aggregate to each person engaged in that production or specified activity. Section 507 includes documentary, television or OTT programme production, event and sports management and other named activities.
Key takeaways
Who reports
A person carrying on film production or a specified activity during all or part of the tax year.
Payment aggregation
The statement covers all payments over ₹50,000 in aggregate made or due to each engaged person.
Prescribed filing details
The form, manner, filing period and receiving authority are prescribed.
Specified activities
The statutory definition includes named media, event, sports and performing-arts activities and can extend by notification.
Who must file, and when
Any person carrying on the production of a cinematograph film, or engaged in any specified activity, or both, during the whole or any part of a tax year, must furnish a statement in the prescribed form and manner, within the prescribed period, to the prescribed income-tax authority.
What the statement must contain
The statement must contain particulars of all payments exceeding ₹50,000 in the aggregate, made by, or due from, the person to each individual engaged by them in the production or specified activity.
Meaning of "specified activity"
"Specified activity" means any event management, documentary production, production of programmes for telecasting on television or over-the-top platforms or any other similar platform, sports event management, other performing arts, or any other activity the Central Government may, by notification, specify.
Step-by-step flow for applying Section 507
- 1
During the tax year, did the person produce a cinematograph film or carry on a specified activity?
This covers the whole or any part of the tax year. Under Section 507(3), "specified activity" means event management, documentary production, production of programmes for television or over the top or similar platforms, sports event management, other performing arts, or any other activity notified by the Central Government.
- No: Section 507 does not apply.
- Yes: Go to the next step.
- 2
List each person engaged in that production or specified activity
The statement is about payments to each person engaged by the reporting person in that production or activity.
- 3
For each such person, are the payments made or due, in aggregate, over ₹50,000?
Section 507(2) counts both amounts paid and amounts due, added together for each person.
- No (₹50,000 or less): That person's payments need not be shown; continue with step 4 for the others.
- Yes: Include particulars of all payments to that person in the statement.
- 4
Furnish the statement
The period, form, manner and income-tax authority are left to rules ("as may be prescribed"). Section 507 does not set a date.
Practical checklist
Do
- Identify every person engaged in the covered activity and aggregate payments made or due to each.
- Check the prescribed statement form, manner and deadline for the tax year.
Avoid
- Do not test the ₹50,000 threshold against each individual payment in isolation.
Illustrative example
Worked example: an event management firm
Hypothetical facts (illustration only, not a real taxpayer): Rhythm Events carries on event management throughout a tax year. It engages four persons for its events. All amounts are assumed: a sound engineer is paid ₹30,000 and is owed a further ₹25,000; a decorator is paid ₹40,000 and is owed ₹8,000; a stage artist is paid ₹50,000; and a lead performer is paid ₹1,20,000.
Is Section 507 attracted?
Event management is a specified activity under Section 507(3), so Rhythm Events must furnish a statement.
Sound engineer
₹30,000 + ₹25,000 = ₹55,000. This is over ₹50,000, so the payments are shown.
Decorator
₹40,000 + ₹8,000 = ₹48,000. This is not over ₹50,000, so the decorator is not included.
Stage artist and lead performer
The stage artist's ₹50,000 is exactly ₹50,000, which is not "over" ₹50,000, so not included. The lead performer's ₹1,20,000 is included.
File
The statement covers the sound engineer (₹55,000) and the lead performer (₹1,20,000), and is furnished in the prescribed form and manner within the prescribed period.
Outcome
- Two of the four persons are reported, with total payments of ₹55,000 + ₹1,20,000 = ₹1,75,000.
- Amounts due but not yet paid are counted, which is why the sound engineer is included.
Frequently asked questions
At what payment level does Section 507 reporting apply?
The statement must cover all payments exceeding ₹50,000 in the aggregate made by, or due from, the filer to each person engaged in the production or specified activity.
Does Section 507 only apply to film producers?
No - it also covers persons engaged in "specified activity", which includes event management, documentary production, TV/OTT programme production, sports event management, other performing arts, and any activity the Central Government notifies.
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 9 October 2026