Black money: Govt likely to revise downwards disclosures to about Rs 55,000 crore

Government is likely to revise downwards the disclosures made under the black money amnesty scheme to about Rs 55,000 crore as one Hyderabad-based realtor and his associates have defaulted on tax payments after declaring more than Rs 10,000 crore unaccounted income.

The Hyderabad-based real-estate businessman had declared a black money of Rs 9,800 crore in the Income Disclosure Scheme (IDS) that closed on September 30. Two or three more persons associated with the realtor had declared Rs 2,000-3,000 crore.

“All of them have failed to deposit the first instalment of tax which was due on November 30,” a senior government official said.

Soon after the default, the Income-Tax Department launched search on the premises of the defaulters. “While the Income Tax Department will take necessary actions, we will revise the total black money declared in IDS,” he said.

The declarations by the realtor and his associates were included in the revised Rs 67,382 crore declarations under IDS announced by the government.

“The declarations will come down to about Rs 55,000 crore,” the official said.

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Earlier this month, the Finance Ministry revised upwards black money disclosed under Income Declaration Scheme (IDS) to Rs 67,382 crore from Rs 65,250 crore estimate announced previously. The revised number would have got the government a little over Rs 30,000 crore in tax.

The revised number had not included Rs 13,860 crore declared by an Ahmedabad-based businessman Mahesh Kumar Champaklal Shah and Rs 2 lakh crore by a Mumbai-based family.

“We did not take on record the two declarations as they looked suspicious as it was filed by persons of small means. Background checks including scrutiny of their previous income tax returns revealed that they did not have the means to disclosure such a huge income,” the official said.

Soon after the four-month IDS closed, the government had on October 1 announced that 64,275 declarants had declared Rs 65,250 crore of black money. After final reconciliation the revised figure of actual declarations received and taken on record was Rs 67,382 crore made by 71,726 declarants.

The revised declarants taken on record included the Hyderabad-based realtor and his associates, the official said, adding that the realtor alone was supposed to pay Rs 1,100 crore of first instalment of tax by November 30 which he failed.

The IDS, announced in the Budget, gave opportunity to holders of illegal wealth to come clean by paying a total 45 per cent tax on the so far hidden assets.

Government had given the option to the declarants of paying tax amount in three instalments up to September 30, 2017. The first instalment of 25 per cent was due on November 30. “Most of the declarants have paid the first instalment,” the official added.