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.
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.