sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Direct Tax »
 No Due Date Extension..?? CBDT asks to file IT Returns and Tax Audit Reports before 30th September
 Here's how to get them Latest ITR forms ask for more income details:
 Notification Central Board Of Direct Taxes
 Life insurers seek separate investment window in income-tax deduction
 Taxpayers may lose this benefit Income tax returns (ITR) filing
 CBDT Notifies Rules for Computing Fair Market Value of Inventories converted to Capital Asset
 CBDT report India inked 67 APAs in FY18
  Pay tax on this PF account withdrawal Income tax return (ITR) filing
 Government notifies withholding tax waiver for masala bonds
 E commerce companies set to collect tax from sellers
 What to do if you have missed deadline Income Tax return (ITR) filing

Govt softens capital gains tax blow
April, 04th 2017

Providing relief to genuine transactions where the securities transaction tax (STT) was not paid at the time of purchase of shares, the government on Monday proposed to keep these out of the purview of the capital gains tax, introduced in the Finance Act, 2017.

The Central Board of Direct Taxes (CBDT) has proposed three scenarios where the capital gains tax would be levied and has kept other transactions out of the purview.

“The CBDT has done the right thing by keeping the exceptions to the capital gains tax to the minimum. This will allay the fears of investors,” said Amit Maheshwari, partner, Ashok Maheshwary and Associates LLP.

The CBDT issued a draft notification and sought stakeholders’ comments on it by April 11. The government’s aim is to curb the practice of declaring unaccounted income as exempted long-term capital gains by entering into sham transactions.

The income tax department is investigating several cases, including using the equity route to launder money, evade taxes and share price manipulation.

The three scenarios that would attract the capital gains tax are: Acquisition of listed shares through preferential allotment that are not traded frequently on the stock exchanges; where listed shares are not purchased over the exchange platform; acquisition of shares just after a company is delisted and before it gets listed again.

Shares sold after October 1, 2004, are exempt from the long-term capital gains tax if the STT was paid at the time of transfer. The Finance Act, 2017, amended the provisions to check instances of malpractice and misuse by allowing exemption only if the STT was paid at the time of acquisition of shares or could not be paid in genuine cases such as initial public offering, bonus or rights issues. Experts, however, said although the notification had provided some relief to genuine transactions, the regulations needed more clarity.

“The draft is intended to curb malpractices to circumvent tax payment. However, the clause about listed shares not purchased from stock exchanges needs further clarification so that unintended transactions are not impacted,” said Rahul Garg, partner and leader (direct tax), PwC. However, tax experts seek clarity on transactions such as gifts, inheritance, private equity investments and employee stock option plans (ESOPs).

Sanjay Sanghvi, partner, Khaitan & Co, said, “The notification needs to clearly spell out genuine cases of investments like FDI/private equity investments, ESOPs etc that will help avoid litigation and doubts.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions