New Delhi [India], Feb.5 (ANI): Responding to frequent queries regarding taxation of long-term capital gains as proposed in the Finance Bill, 2018, the Central Board of Direct Taxes (CBDT) on Sunday gave answers in the form of Frequently Asked Questions or FAQs. This form is now available on the website www.incometaxindia.gov.in.
In a statement, the official spokesperson of the CBDT and Commissioner of Income Tax
(Media and Technical Policy), Surabhi Ahluwalia, said, "Under the existing regime, long-term capital gains arising from transfer of long-term capital assets, being equity shares of a company or a unit of equity oriented fund or a unit of business trust, is exempt from income tax under Clause (38) of Section 10 of the Income Tax Act. However, transactions in such long-term capital assets are liable to Securities Transaction Tax (STT).
The Finance Bill, 2018 proposes to withdraw the exemption under Clause (38) of Section 10 and to introduce a new Section 112A in the Income Tax Act, 1961, so as to provide that long-term capital gains arising from transfer of such long-term capital asset exceeding one lakh rupees will be taxed at a concessional rate of 10 percent.
Since the introduction of the Finance Bill, 2018, on February 1, 2018, several queries have been raised in different fora on various issues relating to the proposed new tax regime for the taxation of long-term capital gains. The Central Board of Direct Taxes (CBDT) has issued in the form of has issued responses to these queries in the form of Frequently Asked Questions (FAQs) dated February 4, 2018, which have been uploaded on www.incometaxindia.gov.in." (ANI)