The investigation wing of the Income Tax Department Mumbai has unearthed tax evasion to the tune of Rs 4000 crore carried out through the long term capital gain route.
“We have found beneficiaries of 12 companies listed on NSE and BSE which evaded tax through the LTCG route,” a source close to the tax department told Moneycontrol.
The agency, which has been pursuing this case for several months now, has started a probe into the 12 companies, which belong to sectors such as consumer, entertainment, infrastructure, steel and finance.
The LTCG route was a common method to evade taxes till the government altered the structure in Budget 2018 to plug the loophole by extending the minimum holding period of equity shares from one year to three years. The cases of evasion date back to before the period the new LTCG structure was brought in.