Long Term Capital Gain taxation reinstated for specified equity transfers with threshold exemption retained and reduced rate above threshold
The Finance Bill 2018 reinstates taxation of long-term capital gains on specified equity-related assets for transfers on or after the effective date, subject to conditions: Security Transaction Tax paid on acquisition and sale, a minimum twelve-month holding period, and capital gains exceeding a statutory threshold; indexation benefits and certain deductions are excluded. A deemed cost-of-acquisition rule sets cost as the higher of actual cost and the lower of fair market value at the reference date and sale consideration, with examples demonstrating resulting gains, nil gains or losses. (AI Summary)