The Income Tax department is investigating a Gujarat-based businessman who had allegedly declared Rs 13,000 crore as undisclosed income under the Centre’s Income Declaration Scheme on September 30, The Times Group’s Nav Gujarat Samay reported. Unidentified officials said authorities are investigating claims that the entrepreneur was taking the rap on behalf of several other businessmen in the state.
Officials said the businessman under their scanner, Mahesh Shah, failed to pay the first instalment of his tax dues amounting to Rs 975 crore, after voluntarily announcing his undisclosed income. The income was declared “black money” after the entrepreneur failed to pay up, officials told the daily.
On November 30, Enforcement Directorate personnel conducted searches in 40 locations across the country in an attempt to crack down on black money procured from currency exchanges, hawala dealers and others. On November 8, Prime Minister Narendra Modi had announced that Rs 500 and Rs 1,000 notes will not be legal tender anymore. He said it was a step to fight black money, corruption and the circulation of counterfeit currency in the country.