Summary:
Besides, the original share owners too will be penalised with the same amount of tax as he too concealed his actual income Therefore the total transaction amount shown in the contract will be Rs 2lakh for which B will issue a cheque to A. The remaining amount of Rs 10lakh and agreed commission will be paid by B by cash.As there is no provision in the share exchanges to transfer the shares in back date, the sale proceed between A and B will take place on current dates (let’s say February 10, 2018) and B will sell the shares on current market value. To dodge the I-T department, the industrialists show their black money as the proceeds from the sale of shares whose value multiplied drastically, they added.In the entire process, they also evade long-term capital gain tax by showing the transactions done after the mandatory period of holding the shares required to take this benefit, sources said.Department sources said about 10-12 such cases have been reported this year which involve black money to the tune of Rs 25-30 crore.Sources also revealed that the department has issued notice in all the cases. I-T sources decode step-by-step procedure followed in such dealsMr A is holder of 1,000 shares of ‘X’ company and value of each share is Rs 1200 on February 10, 2018 (Total market value Rs 12lakh)Mr B (tax evader) who wants to convert his black money of about Rs 10lakh into white approaches A and enters into a deal with him after agreeing commission to be charged by A for this entry.Both of them make a forged contract of sale and purchase of 1000 shares of X company for January 5, 2016 when market value of each share of ‘X’ was only Rs 200..