IT raids brokers, traders suspected of tax evasion worth ₹3,500 crore

The Income Tax department conducted raids at 39 locations across India to check illegal tax evasion by several brokers and traders operating at the Bombay Stock Exchange, media reports said on Saturday.

The traders and brokers were involved in facilitating accommodation of profits and loss through reversal trades in illiquid stock options in Equity Derivative Segment and also Currency Derivative Segment on BSE.

Brokers and traders traded the illiquid stock options in equity derivatives and made artificial losses or profit by executing reverse trades in a short span of time.

Traders made profits or losses of over ₹3,500 crore and manipulated profits of around ₹2,000 crore, the tax department said in a statement.

Raids and survey operations were undertaken at 39 locations in Mumbai, Kolkata, Kanpur, Delhi, Noida, Gurugram, Hyderabad and Ghaziabad.

The searches conducted on December 3 resulted in seizure of unaccounted cash worth ₹1.20 crore, it also said.

The number of beneficiaries who have been benefitted by these manipulated transactions could be to the tune of a few thousand scattered across India and efforts are being made to identify them as also the corresponding quantum of income evaded, the CBDT said.

“Incriminating” evidence recovered during the searches and surveys is being examined for determination of contravention of the various direct tax laws, it added.

(With inputs from agencies)