Amala had allegedly purchased a luxury car in Pondicherry with forged documents.
The actress, however, was immediately released on conditional bail and has been asked to cooperate for the investigation when summoned, reported Sify.com.
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According to a police statement earlier this month, Amala used fake documents to register her car in Puducherry to evade the 20 per cent tax in Kerala on luxury cars costing Rs 20 lakh and above.
They told news agency PTI that the actor, a resident of Kerala, had availed of vehicle loans from Kerala and got her vehicle registered in Puducherry.
She allegedly forged documents to show she was a resident of the union territory and registered the vehicle there to evade a motor tax of her luxury vehicle.
Previously, two Malayalam actors Fahad Faasil and Suresh Gopi were also booked under similar tax evasion charges.
On the professional front, Amala is awaiting the release of Bhaskar Oru Rascal with fellow actors Arvind Swamy and Ratchasan with Vishnu Vishal.
Here are few pictures from her Instagram account: