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(Tax) High Value Suspicious Declarations made under the IDS 2016

An Income Declaration Scheme (IDS) was announced in the budget under which declaration of undisclosed income or asset could be made by agreeing to pay forty five percent of the declared amount as tax, surcharge and penalty. The scheme closed on 30th September, 2016.

On 1st Oct, 2016, 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 crore which had been made by 71,726 declarants.

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 namely, Mr. Abdul Razzaque Mohammed Sayed (self), Mr.Mohammed Aarif Abdul Razzaque Sayed (son), Shrimati Rukhsana Abdul Razzaque Sayed (wife) and Ms. Noorjahan Mohammed Sayed (sister) who were shown as residents of Flat no. 4 , Ground Floor , Jubilee Court, 269-B, T.P.S-III, Linking Road, Bandra (W), Mumbai, filed a total declaration of Rs. Two lakh crore. Three out of the four PAN numbers were originally in Ajmer which were migrated to Mumbai in September 2016, where the declarations were filed.
  • The other declaration was filed by one Mr. Maheshkumar Champaklal Shah resident of 206, Mangal Jyot Tower, Jodhpur Gram Satellite, Ahmedabad for an amount of Rs. 13,860 crore.

These declarations from Mumbai and Ahmedabad were kept pending for investigation about the genuineness of the same and were not included in the total value of declarations announced on 1st October, 2016. After due enquiry it was found that these declarants were persons of suspicious nature and very small means and the declarations could have been misused.

Therefore, after due consideration, the Income Tax Department decided by 30th November, 2016 , to reject these two sets of declarations of Rs. Two lakh Crore and Rs. Thirteen thousand eight hundred and sixty Crore respectively. The Department has commenced enquiries against these declarants to determine the intention behind these false declarations.

Source: CBDT Press Release Dt. 4th December, 2016

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