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Income tax department cracks whip on penny stock promoters

Income tax department has notified rules specifying equity transactions that will attract capital gains tax if the securities transaction tax was not paid on them.

June 06, 2017 / 06:38 PM IST

Income tax department has notified rules specifying that equity transactions that will attract capital gains tax if the securities transaction tax was not paid on them.

Such transactions include acquiring existing listed equity shares through preferential issue in a company where shares are non-frequently traded.

The move aims to curb penny stock promoters from helping in money laundering and converting black money by converting bogus long term capital gains.

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first published: Jun 6, 2017 06:38 pm
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