IT Dept exposes Rs 38k-cr tax evasion by trading in penny stocks

The Income Tax Department has exposed several tax evasion cases worth about Rs 38,000 crore, reports Business Standard. Of the 1,000 entities that could be involved, the IT department has issued notice to 147 individuals. The IT department has come up with the figures after closely looking at cases of stock manupulation in the past two years. The defaulters were able to evade taxes by showing fake back-dated purchase of penny stocks at lower prices, declaring long-term capital gains. The defaulters mostly hail from large cities like Mumbai, Delhi, Kolkata, Ahmedabad and Surat.The defaulters are going to face a penalty of 200 percent on the tax evaded. But some who had declared a part of their unaccounted wealth in the Income Declaration Scheme which ended a month back, will be given immunity.