 "Illustration by Ajay Mohanty")
Promoters who restructured their shareholdings in March could be having the last laugh. Anticipating an adverse outcome from the Budget proposal to introduce anti-abuse provisions in long-term capital gains tax benefits, promoters carried out inter se transfers of shareholding worth Rs 2 lakh crore.
According to new regulations, which have come into effect from April 1, 2017, all transactions involving shares acquired without paying the the securities transaction tax will be subject to capital gains tax.
The tax department, while releasing the final regulations on June 5, provided a list of transactions that were exempt from these provisions. Inter se promoter transfers
