I-T rejects declarations of Rs 2 lakh cr, Rs 13,860 cr; begins probe

The Income Tax Department has rejected two sets of declarations of Rs2 lakh crore and Rs 13,860 crore made from Mumbai and Ahmedabad, respectively, after an inquiry found that declarants were "persons of suspicious nature" and "very small means" and the declarations could have been misused.

These declarations were kept pending for investigation about the genuineness of the same and were not included in the total value of declarations announced on October1, said a statement issued by the Department of Revenue Central Board of Direct Taxes, Union Ministry of Finance.

"It was announced that declarations totalling Rs 65,250 crore were received from 64,275 declarants, subject to reconciliation. After final reconciliation, the revised figure of actual declarations received and taken on record was Rs 67,382 crores, which had been made by 71,726 declarants," said the statement.

Among the declarations received, there were two sets of declarations of high value, which were not taken on record in the above figure because they were found to be suspicious in nature being filed by persons of small means.

A family of four declarants - Abdul Razzaque Mohammed Sayed (self), Mohammed Aarif Abdul Razzaque Sayed (son), Rukhsana Abdul Razzaque Sayed (wife) and Noorjahan Mohammed Sayed (sister) - all residents Linking Road, Bandra (W), Mumbai, had filed a total declaration of Rs 2 lakh crore. Three out of the four PAN numbers were originally in Ajmer, which were migrated to Mumbai in September, where the declarations were filed.

The other declaration was filed by one Maheshkumar Champaklal Shah, a resident Jodhpur Gram Satellite, Ahmedabad, for an amount of Rs 13,860 crore.

The department has commenced inquiries against these declarants to determine the intention behind these false declarations, the statement added.

The declarations were made under an Income Declaration Scheme (IDS), which was announced in the budget under which declaration of undisclosed income or asset could be made by agreeing to pay 45 percent of the declared amount as tax, surcharge and penalty. The scheme closed on September 30.