New Delhi April 4 (IANS) India s Income Tax Department has specified a list of equity share sale transactions that will have to comply with the latest Budget provision and pay long-term capital gains tax if Securities Transaction Tax has not been paid.
It is proposed to notify that the condition of chargeability to STT (Securities Transaction Tax) shall not apply to all transactions of acquisitions of equity shares entered into on or after the first day of October 2004 other than the specified transactions the Central Board of Direct Taxes (CBDT) said in a draft notification on Monday seeking stakeholder comments by April 11 to finalise the proposal.
These include purchase of shares of a listed company that are not frequently traded through preferential issue transaction for purchase of listed equity share in a company not entered through a recognised stock exchange and acquisition of shares of a company during the period it was delisted from recognised stock exchanges.
Frequently traded shares means shares of a company in which the traded turnover on a recognised stock exchange during the 12 calendar months preceding the calendar month in which the transfer is made is at least 10 per cent of the total number of shares of such class of the company the CBDT said.
The proposal comes after the Budget 2017-18 announcement to exempt from long-term capital gains tax only if STT had been levied on purchase of shares and other genuine cases such as public offers.
Indian stock market transactions attract STT in the range of 0.017 per cent to 0.125 per cent.
--IANS
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CBDT proposes tax benefits for genuine equity deals
