The Hindu Business Line : Tax dept sees Rs 800 cr evasion by stock brokers

NEW DELHI: The I-T Department is probing tax evasion to the tune of Rs 800 crore by some stock brokers who are believed to be diverting profits, earned on trading in NSE, BSE and commodity markets, to “on-deserving” clients through manipulation of client specific codes.

Sources said profits earned or losses suffered by individual market players are being diverted to "non-deserving'' clients who have allowed his trading code to be used by a stock broker.

The department has estimated that around Rs 800 crore has been siphoned off this way. “The losses suffered or profit earned by an individual or a company in a day are being diverted to such an entity who is not monitoring his trade regularly and has give n his proprietary code to a broker for playing in the market,” sources said.

Brokers and other players who receive these benefits are evading huge taxes and are manipulating their genuine capital earned in a day's trade, they said. Sources said the I-T department will now communicate the probe report to market regulator SEBI to gain access to the suspicious codes and other details from the stock exchanges for further action. - PTI

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