Ahmedabad-Based Mahesh Shah Says He Disclosed Rs 13,860 Crore In Black Money For A Commission
In a dramatic surrender on Saturday Ahmedabad-based land broker, Mahesh Shah, resurfaced in a television studio after ten days of hiding, and was taken for interrogation by local police and officials of the income tax department.
Shah had disclosed Rs 13,860 crore under the central government's Income disclosure Scheme (IDS), an effort to unearth black money, that closed on September 30, 2016. But 10 days ago Shah went missing and defaulted on paying the first installment of tax that was due on November 30.
Read: Besides Mahesh Shah, Taxman Rejected Suspicious Declaration Of Mumbai Family
Shah's disappearance prompted the income tax department to conduct searches on the residences and business premises of friends, relatives and his chartered accountant. On Saturday evening Shah made an expected appearance on ETV Gujarati, a regional television news channel, and said he had returned to protect his family and friends from the tax related searches and investigations.
Shah was heard urging the hosts of the television show to keep his family and friends out of the issue. He also sought protection for his family.
He claimed during the interview that the income he had disclosed under the IDS did not belong to him and that he disclosed it on behalf of certain politicians and businessmen for a commission. But he did not disclose any names of the people involved, claiming instead that he will extend full cooperation to the income tax department.
Shah also claimed during the broadcast that he had visited Mumbai to arrange money for the first installment of Rs 1,450 crore but had failed to get it from those on whose behalf he had made the disclosure.
Some media reports suggest that the income tax department cancelled the income declaration made by Shah after his disappearance.
The government claimed Rs 65,250 crore of untaxed income was voluntarily disclosed under the Income Disclosure Scheme, an amnesty scheme of sorts. While the scheme did not spare the income disclosed from being taxed at a penal rate of 45 percent, it did spare disclosures from prosecution for evasion.
Those declaring income under the Scheme had the option to pay the tax in three installments. The first installment was due by November 30, 2016 and the final by September 30, 2017.
The government had estimated a tax collection of over Rs 14,500 crore in this financial year based on the disclosures made under the IDS.
Shah's disclosure of Rs 13,860 crore was the largest individual disclosure made under the Scheme.
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