Companies must disclose securities deals above Rs 10 lakh by May 31: Govt

All the companies have been asked to declare shares and bond transactions involving Rs 10 lakh or above in a financial year to Income Tax department by May 31 by the government.

New Delhi: All the companies have been asked to declare shares and bond transactions involving Rs 10 lakh or above in a financial year to Income Tax department by May 31 by the government.

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 Income-Tax 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.

With PTI Inputs

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