shot-button
Subscription Subscription
Home > News > India News > Article > CBDT responds to queries regarding long term capital gains taxation

CBDT responds to queries regarding long-term capital gains taxation

Updated on: 05 February,2018 06:52 AM IST  |  New Delhi
ANI |

Responding to frequent queries regarding taxation of long-term capital gains as proposed in the Finance Bill, 2018

CBDT responds to queries regarding long-term capital gains taxation

Representational picture
Representational picture


Responding to frequent queries regarding taxation of long-term capital gains as proposed in the Finance Bill, 2018, the Central Board of Direct Taxes (CBDT) on Sunday gave answers in the form of Frequently Asked Questions or FAQs. This form is now available on the website www.incometaxindia.gov.in.


In a statement, the official spokesperson of the CBDT and Commissioner of Income Tax (Media and Technical Policy), Surabhi Ahluwalia, said, 'Under the existing regime, long-term capital gains 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 Income Tax 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 one lakh rupees will be taxed at a concessional rate of 10 percent. Since the introduction of the Finance Bill, 2018, on February 1, 2018, several queries have been raised in different fora on various issues relating to the proposed new tax regime for the taxation of long-term capital gains. The Central Board of Direct Taxes (CBDT) has issued in the form of has issued responses to these queries in the form of Frequently Asked Questions (FAQs) dated February 4, 2018, which have been uploaded on www.incometaxindia.gov.in.'

Catch up on all the latest Mumbai, National and International news here

Download the new mid-day Android and iOS apps to get updates on all the latest and trending stories on the go

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!


Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK