Chapter VII of Finance Act, 2004 - Securities Transaction Tax

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.... securities entered in a recognized stock exchange Under the existing provisions of the Income-tax Act, profits or gains arising to an investor from the transfer of securities are charged to tax either as long term capital gains or short term capital gains depending on the period of holding of the said securities. Short-term capital gains arising from transfer of securities are taxed at the app....

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.... the stock exchange from the purchaser of such securities and paid to the exchequer. The provisions relating to the proposed tax are contained in Chapter VII of the Finance (No.2) Bill, 2004, and shall take effect from the date this Chapter comes into force. Further, it is proposed to insert clause (38) in section 10 of the Income-tax Act, so as to provide exemption from long-term capital gains....