The Income Tax department has launched searches against a city-based realtor, who declared an estimated Rs 9,800 crore black money under the recently concluded IDS, after he failed to deposit the first installment of tax on November 30. The default by the real-estate businessman has created ripples in the tax department as the declaration was categorised as “valid” under the one-time black money declaration window that ended on September 30. The invalidity of this declaration, officials said, would lead to a dent in the total stash collection figures under this scheme, which was recently revised upwards to Rs 67,382 crore as against Rs 65,250 crore estimated earlier.
These declarations were made by 71,726 declarants which included the businessman based here. The department, sources said, swung into action and launched the searches yesterday, which are continuing till today, after the businessman failed to deposit the first installment of taxes, as per the Income Declaration Scheme (IDS), estimated to be about Rs 1,100 crore. The department had recently said it has rejected two disclosures of an astonishing amount of Rs 2 lakh crore by a Mumbai family as well as the controversial Rs 13,860 crore by an Ahmedabad-based businessman after their claims were detected to be false by the taxman in the initial stages itself.
The department has already “commenced enquiries against these declarants”. “While the Ahmedabad and Mumbai declarations were not counted in the final IDS collections, the Hyderabad case was counted as valid under the IDS. With the default of first installment happening, the taxman had no option but to carry out action under tax laws against the said businessman and ascertain his resources,” they said.
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IDS was announced in the Budget under which declaration of undisclosed income or assets could be made by agreeing to pay 45 per cent of the declared amount as tax, surcharge and penalty. After the final amount of declarations, the government is expected to get over Rs 30,000 crore in tax and penalty. Government had given the option, to the declarants, of paying tax amount in three installments up to September 30, 2017. The first installment of 25 per cent has already come as the last date for payment was November 30.