Bond washing transation
This query is : Resolved
Dhananjay Singh
(Querist)
24 January 2014
please explaion the term bond washing transaction
CA SAYANTAN BASU
(Expert)
25 January 2014
Dear sir ,
In order to avoid the tax liability some time high income group assessee sell their securities to low income group friends or relative few days before the accrual or due date of interest and acquire them back after the date is over. As on the due date he is not owner, in this way he will be able to avoid the payment of tax on the interest by shifting the burden to other who may have or very little income. This is merely an eye-washing transaction. Such transaction which aims at transferring the income not the security is known as bond washing transaction.section 93 of i.t. act 1961
In order to avoid the tax liability some time high income group assessee sell their securities to low income group friends or relative few days before the accrual or due date of interest and acquire them back after the date is over. As on the due date he is not owner, in this way he will be able to avoid the payment of tax on the interest by shifting the burden to other who may have or very little income. This is merely an eye-washing transaction. Such transaction which aims at transferring the income not the security is known as bond washing transaction.section 93 of i.t. act 1961
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
