Jignesh ShahIf you are an investor in the exchange market, you will enjoy reading ‘The Target’, written by Shantanu Guha Ray. It enlightens you about the ways you can manipulate your money so that you can refrain from paying tax. Well, now I understand the lust for the stock market that many people have, especially, if it is also termed as a ‘legal gambling’ in many circles.
So here is how these so called investors who are quoting a big figure of Rs 5600 crore, actually played hand in glove with the brokers so that they can earn more and pay less taxes. Now, if I am a client who wants to indulge in market manipulation, then based on the PAN numbers of my wife and me, my broker will generate two unique client codes. So, then I start buying and selling from my UCC account and earn massive profits. Now, as be the RBI norms, any profit I make in exchanges, be it commodity or stock, I have to pay tax on it – for this is a profit or to simplify it further, it is an income for me. Now, how do the brokers help you in off setting these profits? Well, your wife’s account comes in handy then. Your broker will transfer your profits or losses to an account by changing the client code 30 minutes after the market closes for the day. As a result, if the information is changed and your account on paper now shows that you have lost all your money but that’s exactly opposite. So, you do not have to pay taxes. It is just brilliant how brokers-investors played this game, but when the NSEL crisis erupted they blame Jignesh Shah and FTIL for the discrepancies made by their broker, in some cases, with their consent. These brokers must be punished immediately!