New tax laws on dabba trade

The income tax law needs to be appropriately amended to prevent black money transactions in off-market deals, the white paper on black money tabled in Parliament on Monday said.

The income tax law needs to be appropriately amended to prevent black money transactions in off-market deals, the white paper on black money tabled in Parliament on Monday said.

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“To prevent misuse of ‘off-market’ and ‘dabba-trading’ or trading outside the recognised stock exchanges, further amendments in the income tax law may need to be introduced to allow losses in off-market share transactions to be set off only against profits derived from such transactions,” the paper said.

Such a measure may create barriers to misuse of such trading and plug loopholes, it said.