Tax-happy market shows relief as Budget 2017 gives no negatives

Status quo on LTCG, most FPIs exempted from indirect transfer tax, flat rate on off-market deals

Traders and investors were relieved that there were no negative surprises in the Budget. The Budget did not tinker with the holding period for availing long-term capital gain tax (LTCG) on sale of listed securities, and exempted Category-I and Category-II foreign portfolio investors (FPIs) from paying tax for indirect transfers, which resulted in a smart rally on bourses.
 
The tenure to qualify for LTCG for share sales of listed companies was expected to be increased to 24 months, from the existing 12 months. While the tenure has not been changed, the Budget proposes to amend the rule to make