Centre working on mechanism to remove anomalies in capital gains tax calculations

With an aim to plug capital gains tax leakage, the revenue department is working on a mechanism to analyse futures and options (F&O) trade data and pre-initial public offering (IPO) transactions, a government official told Business Standard. The department is identifying risk parameters such as fair market value, variation in margins and losses to process speculative trading data. In past few years, multiple cases of capital gains tax evasion through stock market transactions have been probed. Growing instances of reversal trades and booking fictitious profit and loss has triggered the move.

References
1. https://www.business-standard.com/article/economy-policy/revenue-dept-working-on-a-mechanism-to-plug-capital-gains-tax-leakage-122080101625_1.html