The Income Tax Department has come across a peculiar case in which an Ahmedabad based businessman declared a large amount of unaccounted or 'black' money under the Centre's Income Declaration Scheme (IDS) but has failed to pay the tax on the declared amount.
On 30 September, Mahesh Shah had voluntarily declared his unaccounted income of a whopping ₹13,000 crore under the IDS. As per the scheme, those who declared their unaccounted income were offered immunity under IDS after paying a tax on the amount declared.
According to the Times of India, IT Department officials say that Shah failed to pay the first installment of the tax, an amount of ₹975 crore, by 30 November. Upon his failure to pay the amount, the Income Tax department declared the entire amount of ₹13,000 crore as 'black'.
The TOI report states that search operations were then carried out by the IT Department following which it was discovered that Shah had declared the "black money" on behalf of various "big shots" of Ahmedabad.
Search operations are still being carried out by the IT Department at Shah's accountants' offices and more revelations are expected.
Also on HuffPost India.