<b>Debashis Basu:</b> Why <i>black-ka-white</i> through stocks won't stop

Here are various reasons why laundering through the stock market is thriving

Under the 2017-18 Budget provisions, equity shares bought on, or after October 1, 2004, would attract capital gains tax, if securities transaction tax (STT) had not been paid at the time of purchasing the shares. Bonus shares, shares from public offers or stock options, on which we pay no STT, would not attract this provision. So, whom does this provision target? Those who buy into illiquid and closely-held listed stocks (“khoka” companies) through a preferential allotment (on which no STT is paid), hold them for over a year and book tax-free income as long-term capital gains (LTCG). I have described