Won’t allow tax evasion through stockmarkets
NEW DELHI: Stockmarkets cannot be allowed to be misused by manipulators for evasion of taxes and the BSE has put in place a strong surveillance mechanism to check any such misdeeds, the exchange’s CEO Ashish Chauhan has said.
He also urged the government to have a fresh relook at the laws for further tightening of rules and removing the loopholes in the capital gains tax exemption framework to completely stop any tax evasion through stock market trading.
According to Chauhan, there is a widely held perception that only penny stocks are manipulated for tax evasion, but there was a need to study whether larger stocks are also used for such misdeeds as 80-90 per cent of the capital gains tax exemption being claimed was from larger companies.
In the annual Budget this year, the government announced a major step to check tax evasion through penny stocks by limiting the long-term capital gains tax exemption only in stocks in which purchase securities transaction tax was levied.