3.4 lakh elude capital gains tax on equity, Mutual fund sales.

According to the analysis of the Income Tax authorities, it is suspected that more than 3.4 lakh investors have eluded or did not report gains from equity shares and mutual funds.

Up to 16% of taxpayers or around 91,000 entities and HUF (HINDU UNDIVIDED FAMILY) did not file returns for sale of the listed shares or mutual funds exceeding 20 lakhs.

2.5 lakh individuals and HUFs, reported no gains or under-reported returns from the sale of mutual funds, based on the analysis reported to TOI.

Though the analysis says the situation of the returns remaining from investors, there has also been levy demanding to abolish LTCG (Long Term Capital Gains).

This demand has been told to dismiss as LTCG tax helps track transactions and once abolished, it will open up an escape entrance for investors and will lead to tax avoidance.