A series of actions taken by this government shows that it is keen to ensure that listed shell companies are not used to convert black money into white. To start with, the 2017 Union Budget added a provision by which long-term capital gain (LTCG) will not be tax-free for those who acquired shares on or after October 2004 and hadn’t paid the securities transaction tax (STT). Next, the Prime Minister’s Office (PMO) formed a task force on February 10 to prevent the misuse of 900,000 shell companies for money laundering and tax-evasion. “Harsh, punitive actions will be taken against deviant
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