Penny stocks: The income tax department can now file an appeal in tribunals and court if you are found to be using penny stocks or accommodation entries or both to evade taxes. Earlier the tax department could file such appeals only if the tax effect crossed certain thresholds, however now these cases are to be taken on merit irrespective of the tax effect amount.
To shed light on this issue, Economic Laws Practice (ELP)’s Mitesh Jain has been quoted in an article, “Penny stocks linked tax evasion: Tax dept may take you to tribunal and court for bogus transactions” written by Neelanjit Das from The Economic Times.
