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Government invites comments on draft Notification under section 112A as inserted by Finance Act, 2018 by 30 April 2018

Capital Market 

The Finance Act, 2018 has withdrawn the exemption under clause (38) of 10 of the Income-Act, 1961 (the Act) and has introduced a new 112A in the Act, to provide that long term capital gains arising from transfer of a long-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at 10 per cent of such capital gains exceeding one lakh rupees.

The said section, inter alia, provides that the provisions of the shall apply to the capital gains arising from a transfer of long-term capital asset being an equity share in a company, only if (STT) has been paid on acquisition and transfer of such capital asset.

However, to provide the applicability of the regime under Section 112A of the Act to genuine cases where the STT could not have been paid, it has also been provided in sub-section (4) of Section 112A of the Act that the may specify, by notification, the nature of acquisitions in respect of which the requirement of payment of STT shall not apply in the case of acquisition of equity share in a company.

In order to have wider consultation in this matter, the draft of notification proposed to be issued under Section 112A (4) of the Act has been uploaded on Stakeholders are requested to submit their comments/ suggestions on the draft notification by 30th April, 2018 at the e-mail address

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 25 2018. 08:27 IST
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