Stuck in a tax tangle, stockbrokers have now approached the Income Tax department, seeking clarity on the format in which their transactions should be reported, CNBC-TV18 learns from sources.
“For brokers, it is just practically impossible to provide clarification for hundreds of transactions; it is just normal in business to show income on consolidated basis,” sources said. They said brokers have requested the tax department for a consolidated format to be included in their report.
"There is no proper bifurcation and option to give proper replies on every transaction on the portal, as those also include off-market transactions for transferring shares to clearing member for margin purposes, and some of the portfolio management transactions, which is another challenge," a source said.
So they have requested the tax department to make available a format through which brokers can compare and upload the necessary confirmations/rectifications.
“Many of the transactions mentioned on the portal are off-market transactions relating to loan from directors and directors' relatives and loan return. There is no option on the portal to submit response/ clarification on the same,” the stockbrokers have said in their note to the tax department.
Brokers have also raised the point that the information collected by the tax department is in raw format through the AIR or the Annual Financial Information and gives a distorted analysis.
However, the tax department is yet to clarify their concerns and government sources said that their representation is still under examination.
