August 2009
Tax Dept. sees Rs.800 cr evasion through diversion of profits
By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
Reading Time 2 mins
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Tax Dept. sees Rs.800 cr evasion through diversion of
profits
The Income-tax Department is probing tax evasion to the
tune of Rs.800 crore by some stockbrokers who are believed to be diverting
profits earned on trading in NSE, BSE and commodity markets, to
‘non-deserving’ clients through manipulation of client-specific codes.
Sources said profits earned or losses suffered by
individual market players are being diverted to ‘non-deserving’ clients who
have allowed his trading code to be used by a stockbroker. The Department has
estimated that around Rs.800 crore has been siphoned off this way.
“The losses suffered or profit earned by an individual or a
company in a day are being diverted to such an entity who is not monitoring
his trade regularly and has given his proprietary code to a broker for playing
in the market,” sources said.
Brokers and other players who receive these benefits are
evading huge taxes and are manipulating their genuine capital earned in a
day’s trade, they said.
Sources said the Income-tax Department will now communicate
the probe report to market regulator SEBI to gain access to the suspicious
codes and other details from the stock exchanges for further action.
(Source : Media Reports & Internet, 9-6-2009)
