Published On : Wed, Aug 26th, 2015

Income Tax department suspects Rs 200 crore tax evasion on capital gains in Nagpur

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long-term-capital-gainNagpur: The Income Tax department has detected about 200 cases of bogus “long term capital gains” in Nagpur, Aurangabad and Nashik divisions of Maharashtra where tax of around Rs 400 crore was evaded.

These cases involved concealment of long-term capital gains of around Rs 1,000 crore, realised by sales of shares.

A number of Kolkata-based companies had been found to be helping this tax evasion racket, a senior IT department officer said here on the condition of anonymity.

A special investigation team (SIT) constituted by the Supreme Court, SEBI officials and IT department sleuths is conducting the probe jointly.

The modus operandi of tax evaders involved buying shares of various companies and jacking up their prices by rigging.

The companies, some of them existing only on paper, regularly filed balance sheets and proceedings of board meeting with the Registrar of Companies (ROC). The inspection of these documents made the authorities suspicious.

In Nagpur, a survey was conducted earlier this week by the IT department regarding the same issue.