LTCG shadow looms large over Tata group's plan to reduce cross-holdings

Group companies, excluding Tata Sons, hold nearly Rs 214.6 billion worth of shares in other listed firms

The long-term capital gains (LTCG) tax, proposed in the Union Budget 2018-19, will make it costly for the Tata group to consolidate promoter holdings in various listed companies owned by Tata Sons, the group’s holding company, from the next financial year, 2018-19. 

However, the Tata group has a window till March 31 to complete this exercise without coming into the tax net. 

Various group companies, excluding Tata Sons, held shares worth nearly Rs 214.6 billion in other listed Tata companies at the end of December last year. After this Budget, group companies will have to pay the 10 per cent LTCG tax