Finance Minister Arun Jaitley today proposed to tighten the norms for seeking capital gains tax exemption on investment of sale proceeds from immovable property in bonds by raising the lock-in period from three years to five years.
As per the Budget proposal, the exemption from tax will be available only in respect of long-term capital gains arising out of sale of immovable property.
"It is proposed to rationalise the existing provision relating to investment in capital gain bonds by providing that the exemption shall be available only in respect of long-term capital gains arising out of sale of immovable property and investment in the bond shall be for a minimum period of 5 years from the existing 3 years," according to the Budget document 2018-19.
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Jaitley also proposed to provide that if stocks-in-trade is converted into capital asset, the fair market value of the same on the date of conversion shall be taken into account for computing business income.
The finance minister also proposed to provide that prosecution shall lie against companies for non-filing of returns irrespective of the fact that whether any tax is payable or not.
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