Searches were being conducted on prominent producers of the film industry.
The income tax department carried out raids on two top Kannada film stars and three movie producers on Thursday, the officials said.
Those raided include Shiva Rajkumar and Puneet Rajkumar, sons of Kannada thespian late Rajkumar, and leading producer Rockline Venkatesh, the IT officials said.
The raids began in the morning across 23 locations in Karnataka with teams comprising around 200 sleuths in total involved in the exercise, the officials said.
The raids were continuing, they added.