There's bad news for stock brokers who evaded or under-paid securities transaction tax in 2004-05.
The Central Board of Direct Taxes has decided to examine all returns filed in respect of taxable securities transactions for the year 2004-05.
The tax department is also tightening the noose around evaders of wealth tax. In addition to issuing scrutiny guidelines for securities transaction tax, it has issued separate scrutiny guidelines for wealth tax.
The move has been prompted by a continuous decline in the number of wealth tax assessees, presently pegged at just one lakh.
According to guidelines for the STT, the CBDT has asked chief commissioners that all STT returns be picked up for detailed investigation under Section 102 of the Finance Act, 2004.
STT returns are filed by stock exchanges and mutual funds, detailing the volume of security transactions and the tax paid. The first return of taxable STT for the financial year 2004-05 was due in June 2005.
The STT rates range from 0.017 per cent on transaction of derivatives to 0.25 per cent on the sale of units of an equity-oriented
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