InvestorQ : What is the Rs.8000 crore tax evasion scam that has been committed by stock brokers?
Rutuja Nigam made post

What is the Rs.8000 crore tax evasion scam that has been committed by stock brokers?

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7 months ago
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This is not a new tax evasion scam but has been under investigation for more than 10 years now. Now the Revenue Department investigating the tax evasion scam has put a likely number of Rs.8200 crore on the scam.

This is essentially a round tripping designed avoid payment of long term capital gains tax. This is done by indulging in a reversal of options trade on the Bombay Stock Exchange (BSE) in highly illiquid options where the option price can be easily controlled.

The revenue department has identified about 20,000 such beneficiaries. People transfer losses to each other by trading in illiquid options, ideally of a distant month where any cross trades are unlikely. This helps persons with capital gains to avoid paying tax.

The department has conducted a series of raids and has also searched nearly 22 brokerage offices in various cities which include cities like Mumbai, Kolkata, Kanpur Hyderabad as well as the Nation Capital Region, comprising Noida, Gurugram and Ghaziabad.



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