Revenue dept working on a mechanism to plug capital gains tax leakage

In past few years, cases of capital gains tax evasion through stock market transactions have been probed

Having observed variations in capital gains tax computation, the revenue department is working on a mechanism to analyse futures and options (F&O) trade data and pre-initial public offering (IPO) transactions.

“The directorate of I-T systems is working on certain risk-assessment parameters to access the data, which could be on the basis of buying and selling prices of shares in F&Os, variations in margins, fair market value versus IPO prices, etc. The idea is to segregate and process the voluminous data on equity derivatives for effective use,” said a senior government official privy to the plan.

At present, the department receives huge amounts