TaxTMI 
TaxTMI 
Income Tax Department conducts search & survey operations on Share Brokers/Traders across India
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....ncome Tax Department conducts search & survey operations on Share Brokers/Traders across India <br>News and Press Release<br>Dated:- 7-12-2019<br><BR>On 3rd December 2019, the Income Tax Department carried out search and survey operations on certain share-brokers/traders who were involved in facilitating accommodation of profits/loss through reversal trades in illiquid stock optionsin Equity Deriv....
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....ative Segment and alsoCurrency Derivative Segment on Bombay Stock Exchange (BSE). Over 39 locations spread across Mumbai, Kolkata, Kanpur, Delhi, NOIDA, Gurugram, Hyderabad andGhaziabad were covered. The search/survey action has unravelled the entire modus-operandi which has been adopted by the share-brokers/traders to trade into the illiquid stock options in Equity Derivative Segment and thereby....
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.... generate artificial losses/profit by executing reversal trades in a very short span of time. By this contrived methodology, the unscrupulous entities have secured desired profits/losses, which is estimated to be more than ₹ 3500 Crore. The search/survey action has also resulted into identification of the wrongful long-term capital gains taken in at least 3 penny stocks listed on the BSE, wh....
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....ere the manipulated profits utilized by the beneficiaries aggregate to around ₹ 2000 Crore. The search action has resulted into seizure of unaccounted cash of ₹ 1.20 Crore. The number of beneficiaries who have been benefitted by these manipulated transactions could be to the tune of a few thousand scattered across India and efforts are being made to identify them as also the correspo....
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....nding quantum of income evaded. Incriminating evidence recovered during the course of actions is also being examined for determination of contravention of the various direct tax laws.<BR> News - Press release - PIB....