Promoters face additional tax on capital gains from specified securities transfers with higher rates for non domestic promoters. The amendment imposes an additional income tax on capital gains where the shareholder or holder of specified securities is a promoter: short term gains ... Summary
Promoters face additional tax on capital gains from specified securities transfers with higher rates for non domestic promoters.
The amendment imposes an additional income tax on capital gains where the shareholder or holder of specified securities is a promoter: short term gains incur an extra 2% (domestic company) or 10% (non domestic), and long term gains incur an extra 9.5% (domestic) or 17.5% (non domestic). It retains existing tax computation and adds the specified surcharge. Definitions prescribe promoter for listed entities by securities regulation and otherwise by the Companies Act or over 10% shareholding; "specified securities" follows the Companies Act. Effective 1 April 2026 for tax year 2026-2027 onward.
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