The Income Tax (IT) Department has rejected two sets of very high value declarations made by two individuals in Maharashtra and Gujarat. Mahesh Shah of Ahmedabad and a Mumbai family in Bandra had declared Rs 13,680 crore and Rs 2 lakh crore respectively as unaccounted income.
The department hasn’t taken on record the declarations as both of these declarants have very small income. An inquiry has been set up by the IT department to reveal the root cause.
On 1st Oct 2016, it was announced that declarations worth Rs 65,250 crore were received from 64,275 declarants, subject to reconciliation. The revised figure of actual declarations received and taken on record was Rs 67,382 crore which had been made by 71,726 declarants.
An Income Declaration Scheme (IDS) had been announced in the Union Budget 2016-17, under which declaration of undisclosed income or assets could be made by agreeing to pay forty five percent (45%) of the declared amount as tax, surcharge and penalty. The scheme closed on 30th September 2016.