The startling disclosure of Rs 10,000 crore of undeclared income under the Centre’s Income Disclosure Scheme (IDS) made by an unidentified individual in Hyderabad has turned out to be fake. He did not have even Rs 1 crore, I-T department officials said.
This finding deals an embarrassing blow to the Centre’s claim of unearthing about Rs 65,000 crore of undeclared income through the voluntary IDS. It also calls into question the authenticity of other disclosures made under the scheme.
I-T department sources were not ready to disclose the details of the applicant, except for saying that it was a fake disclosure and the same had been conveyed to headquarters.
According to income-tax department sources, the individual runs a small business. His IDS application for Rs 10,000 crore was said to be the single largest amount declared under the scheme nationwide. When I-T officers checked the veracity of the disclosure, they found that the trader made the startling declaration just to attract attention and did not have even Rs 1 crore.
Questions are now being asked whether the IDS was a ruse to convert black money to white. There are fears that those holding black money could approach IDS applicants to convert their stash into white by paying the 45 per cent penalty.