Sonu Sood evaded tax worth Rs. 20 crore: Income Tax Department

The department added that Sood's' non-profit has increased by Rs. 2.1 crore from overseas donors using a crowdfunding platform which is in complete violation of the country's Foreign Contribution (Regulation) Act.

"During the course of search at the premises of the actor and his associates, incriminating evidence pertaining to tax evasion have been found. The main modus operandi followed by the actor had been to route his unaccounted income in the form of bogus unsecured loans from many bogus entities," the IT Department said as quoted by NDTV.

It further added, "Investigations so far have revealed use of 20 such entries, the providers of which, on examination, have accepted on oath to have given bogus accommodation entries.

"They have accepted to have issued cheques in lieu of cash. There have been instances where professional receipts have been camouflaged as loans in the books of accounts for the purpose of evasion of tax.

"It has also been revealed that these bogus loans have been used for making investments and acquiring properties. The total amount of tax evaded unearthed so far, amounts to more than ₹ 20 crore."

The tax raids came days after the actor met with Delhi Chief Minister Arvind Kejriwal, and the latter declared him the brand ambassador for his government's mentorship programme for school students in the national capital.

Sood earned a lot of praise for his humanitarian efforts across the country helping people struggling with COVID-19-led crisis in the past year.

He organised special flights and buses home for migrants stranded by last year's lockdown and in April-May at the peak of the second wave besides arranging oxygen for coronavirus patients.

After his high profile meeting with Kejriwal, speculations are rife that Sood might join politics and rumours suggested the actor may contest next year's Punjab election.

However, Sood has denied any such plans of him making a debut in politics with the Aam Aadmi Party (AAP).