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

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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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