CBDT says no inflation adjustment available for LTCG tax: Things to know

The Finance Bill, 2018, has proposed to provide for a new long-term capital gains tax regime for equity shares, unit of an equity-oriented fund, and unit of a business trust

Amid adverse reactions coming from stock markets to the proposed long-term capital gains tax on securities, the income-tax department on Sunday clarified that price indexation (adjustment to inflation) will not be available for this tax. The tax comes into effect from April 1, 2018, the clarifications said.

Here are the other responses to the frequently asked questions around long-term capital gains tax:

What has been proposed, according to the I-T dept clarifications?

Under the existing regime, long-term capital gains arising from the transfer of long-term capital assets, being equity shares of a company or a unit of the equity-oriented fund