Tax Evasion Through Shares

Part-I Evasion Practices 1. Bogus Purchase Of Shares to Reduce Business Profit.

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2. Unquoted Shares & Tax Evasion

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3. Evasion Through Reverse Conversion Of Shares?

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4. Speculation Loss And Tax Evasion?

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1. Mix Speculation Loss With Trading Income. 2. Claiming Speculation Loss As Hedge Loss 5. How To Detect Closing Stock Undervaluation?

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6. How To Detect If Short Term Is Claimed As Long Term Gain?

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7. Why Should You Scrutinize Demat Transactions Statement?

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8. How Family and Private Companies Are Used For Evasion?

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9. Use of Mergers for Tax Evasion

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10. How To Decide If Share Transaction Is Business Or Investment Activity?

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11. Why Should You Scrutinize Transactions Of Last Seven Days ?

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12. How To Handle Cases Of Evasion Through Penny Stocks?

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1. When Bogus LTCG On Penny Stock Created Legally. 2. When Bogus LTCG On Penny Stock Created By Using False Documents. 13. Tax Evasion through Futures & Option Trades

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14. Tax Evasion by Changing Client Codes

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Part II 1. Why Should You Keep An Eye On Warrant?

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2. How Preference Share Creates Capital Gains?

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3. Can Scrutiny Of Security Deposit Bring Tax?

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4. Why Knowledge of SCRA & Sales of Goods Act is Required ?

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5. How To Easily Apply Explanation To Section 73?

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6. ESOP, Phantom Stock Option & A flash back on FBT !

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Part III Back To Basics 1. What Are The Procedure For Share Transactions In Dematerialized Form?158 2. How Internet Can Bring You Information You Always Wanted ?

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3. Important Circulars/Instructions Issued By CBDT

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1. Period of holding in case of dematerialized shares. 2. Determination of the ‘date of transfer’ and holding period for the purpose of capital gains. 3. Distinction between shares held as stock-in-trade and shares held as investment 4. What is the meaning of ‘hedging’ with respect to section 43(5) ? 4. Important Circulars Issued By SEBI.

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1. Transfer of shares from pool account to clients account. 2. Time duration for transfer of funds and securities from member to client. 3. What is the definition of ‘negotiated deal’ ?

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4. Circular regulating negotiated deal. 5. Circular regulating broker-client relationship. 6. Mapin abolished 7. NSE Circular on Penalty for Client Code Modification 5. Certain Important Judgments You Must Refer To

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1. What are the views of different courts on the issue “business or investment income” 2. Are illegal expense or losses allowable? 3. Is surplus on “sale as going concern” taxable as capital gains? 4. Are bonus shares or rights to shares capital asset? 5. Does exchange of shares fall within the meaning of transfer? 6. Does reduction of share capital give rise to capital gains? 8. Whether trading in units and govt. securities fall within the ambit of the word “commodity” as given in section 43(5) of the IT Act? 9. Whether the sale of warrants received against debentures held as stock-in-trade give rise to taxable revenue receipt? 6. What Is A Contract Note?

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7. Why Is Demat Transaction Statement Important For Share Investigation? 193 8. What Is A Private Limited Company And What Are Its Privileges?

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9. What is Speculative Transaction?

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10. What does “Beneficial Owner” mean in context of share ownership ?

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11. What Are Derivatives?

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12. Books Maintained By The Broker & Stock Exchanges?

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13. The Addresses of Different Stock Exchanges?

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14. Address of Six Regional Directors (RD) under Ministry Of Corporate Affairs 209 15. Meaning of Words & phrases One Must Know

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