For Quick Alerts
For Daily Alerts

    Concessional LTCG Tax On Equity To Be Extended To Other Investors


    The Budget 2018 re-introduced LTCG tax on equity gains of over Rs. 1 lakh @ 10% without the indexation benefit for listed securities. The rule hold true wherein securities transaction tax or STT is paid. Also the gains upto January 31, 2018 are grandfathered.

    Concessional LTCG Tax On Equity To Be Extended To Other Investors

    It is to be noted that as CBDT has come across genuine cases, where STT cannot be paid at the time of securities acquisition, the concessional benefit 0f 10% LTCG shall be extended to even when investors who did not pay STT. So, instead of the otherwise higher LTCG tax @ 20%, such investors may now on be allowed or shall qualify for a lower LTCG of 10%.

    As per the notification, the mandatory payment of STT shall now be relaxed in cases where listed securities in a company are acquired by means of a preferential issue in case the stocks in the company are not frequently traded on the recognized stock exchange. Also, the relaxation has been granted in a case when the share have been delisted and then listed at a later stage.

    The notification is only at the draft stage and shall be implemented from April of next year. Also, the board has sought stakeholders' comments by April 30.

    Story first published: Wednesday, April 25, 2018, 13:32 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more