<h1>Tax Department Uncovers Rs. 3500 Crore Scheme: Fake Profits and Losses in Stock Trades Exposed Across India.</h1> The Income Tax Department conducted search and survey operations on December 3, 2019, targeting share brokers and traders across India for facilitating profit/loss accommodation through reversal trades in illiquid stock and currency options on the Bombay Stock Exchange. The operations spanned over 39 locations, revealing a scheme to generate artificial profits/losses, estimated at over Rs. 3500 crore. Additionally, wrongful long-term capital gains in penny stocks amounting to Rs. 2000 crore were identified. Unaccounted cash of Rs. 1.20 crore was seized, and efforts are underway to identify thousands of beneficiaries and assess income evasion. Incriminating evidence is being analyzed for tax law violations.