CBDT issues Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018

Feb 05, 2018 | by Avantis RegTech Legal Research Team

The Central Board of Direct Taxes (CBDT) vide press release dated February 04, 2018 has issued Frequently Asked Questions (FAQs) dated 4th February, 2018 regarding taxation of long-term capital gains proposed in Finance Bill, 2018.

Under the existing regime, Long Term Capital Gains (LTCG) arising from transfer of long term capital assets, being equity shares of a company or a unit of equity oriented fund or a unit of business trust, is exempt from income tax under clause (38) of Section 10 of the Act.  However, transactions in such long-term capital assets are liable to Securities Transaction Tax (STT). 

The Finance Bill, 2018 proposes to withdraw the exemption under clause (38) of Section 10 and to introduce a new Section 112A in the Income-tax Act, 1961 so as to provide that Long-Term Capital Gains arising from transfer of such Long-Term Capital Asset exceeding Rupees one lakh will be taxed at a concessional rate of 10%.

[Release ID: 1519095]

 

URL: http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1519095


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