The BSE or Bombay
Stock Exchange on Thursday called for ending exemption of capital gains tax on securities
to contain various entities using capital markets to evade taxes and launder
money.
The government should
rethink the exemption on capital gains taxes on traded securities, which is
enjoyed by listed companies, in order to avoid misuse of the trading platform
to launder money and evade taxes, BSE managing director and chief executive
Ashish kumar Chauhan said here on Thursday.
He admitted that
multilevel "checks and balances" at exchanges alone will not be able
to end money laundering.
Mr Chauhan said that
the BSE, which celebrated 140 years of trading on Thursday, is working on a
proposal to be submitted to the government which would make it difficult for
companies to seek exemption on capital gains tax.
One such proposal is
to identify those companies which fail to play fairly in the market and then
prevent them from availing of capital gains tax exemption, he said.
"What we saw
recently is the use of the market platform for tax evasion. We are in the
process of putting up more checks and balances on our main board as well as on
the SME platform," he said about the recent suspension of 43 companies
from its main board for alleged tax evasion.
His remarks came
amidst a recent crackdown by capital market regulator Securities and Exchange
Board of India against 239 individuals and entities for allegedly misusing the
BSE's SME platform to launder money as well as evade taxes.(NDTV)
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