Firms must disclose securities transactions above Rs 10 lakh by May 31

Also, govt to cancel registration of over 2 lakh firms that have been inactive for a long time

The government has asked all companies to disclose shares and bond transactions involving Rs 10 lakh or more in a financial year to Income Tax (I-T) department by May 31.

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 Rs 10 lakh or more in a financial year to any person will have to make the disclosure online regarding such transactions to the I-T department on or before May 31, 2017.

"Buy back of shares from any person (other than shares bought in the open market) for an amount or value aggregating to Rs 10 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.