Companies must disclose securities deals above Rs10 lakh by 31 May: Govt

A company issuing shares, bonds or debentures aggregating to Rs10 lakh or more in a financial year to any person will have to make the disclosure online to the income tax department on or before 31 May 2017


Revenue secretary Hasmukh Adhia has said that close to 9 lakh companies are not filing annual returns with the ministry of corporate affairs and are a potential source of money laundering. Photo: Mint
Revenue secretary Hasmukh Adhia has said that close to 9 lakh companies are not filing annual returns with the ministry of corporate affairs and are a potential source of money laundering. Photo: Mint

New Delhi: The government has asked all companies to disclose shares and bond transactions involving Rs10 lakh or more in a financial year to income tax department by 31 May.

Besides, a listed company purchasing its own securities for a specified amount from investors will have to furnish the information to the tax department, corporate affairs ministry said in a notice.

A company issuing shares, bonds or debentures aggregating to Rs10 lakh or more in a financial year to any person will have to make the disclosure online regarding such transactions to the income-tax department on or before 31 May 2017.

“Buy back of shares from any person (other than shares bought in the open market) for an amount or value aggregating to Rs10 lakh or more in a financial year,” will also come under this disclosure.

Further, the government is in the process of cancelling the registration of more than two lakh companies that have not been carrying out business for a considerable period of time, amid stepped up efforts to tackle the black money menace.

These firms have been served with show cause notices as they have not been carrying out any operation or business activity for a prolonged time. These companies are suspected to be used for money laundering activities.

Earlier in April, revenue secretary Hasmukh Adhia said that close to nine lakh registered companies are not filing annual returns with the ministry of corporate affairs and are a potential source of money laundering. As per the income tax department records, out of the 15 lakh companies registered in India, only 6 lakh file returns. Out of these 6 lakh, about 3 lakh show nil income.

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