Ahmedabad businessman Mahesh Shah

The Income Tax (IT) department after founding a low profile Ahmedabad businessman Mahesh Shah’s Rs 13,860 crore of undisclosed income under Government’s Income Declaration Scheme (IDS) was found to be dubious sources of income and he was taken into custody, today rejected two more claims worth Rs 2,13,860 crore from Mumbai stating `suspicious’.

IT department’s pro-active initiations against `dubious’ declarations, resulting in panic reactions among those `disclosed’ their `unaccounted’ money under IDS. Today, the IT Department has rejected two sets of declarations of Rs 2 lakh crore and Rs 13, 860 crore made under the IDS. These declarations were rejected after it was found that the declarations were persons of suspicious nature and very small means.

The Department has commenced enquiries against them to determine the intention behind these false declarations. A family of four from Mumbai made the declaration of Rs 2 lakh crore, whereas the other declaration was filed by a resident of Ahmedabad for an amount of Rs 13,860 crore. These declarations kept pending for probe and were not included in total value of declarations announced on first of October this year.

Meanwhile, the revised figure of actual declarations is Rs 67,382 crore as against declarations totalling Rs 65,250 crore announced earlier. The scheme was announced by the government in June this year with an aim to bring out black money from the domestic economy.

Those disclosing assets under the IDS will have to pay 45 per cent tax with penalty. The payments can be made in three instalments till September 2017. The first installment of 25 per cent under the scheme was to be paid by November this year followed by another instalment of 25 per cent by 31st March 2017. The remaining amount will have to be paid by September, 2017.