Up to Assessment Year 2018-19, any long-term capital gain arising from transfer of securities, being equity shares, units of equity-oriented mutual fund or units of business trust, if transfer of such capital asset is chargeable to Securities Transaction Tax (STT), was fully exempt from tax under section 10(38).
The Finance Act, 2018 withdrew this exemption by inserting a new Section 112A with effect from Assessment Year 2019-20. Tax is levied under this provision at the concessional rate of 10% on long-term capital gains arising from transfer of said securities, if long-term capital gain exceeds Rs. 1 lakh.
Section 112A provides relief to an assessee who has acquired the aforesaid capital assets before February 1, 2018. In that situation, the cost of acquisition of such assets shall be taken to be higher of the following:
a) Actual cost of acquisition of equity shares/units
b) Lower of FMV of such asset as on 31-01-2018 or full value of consideration received as a result of transfer of such assets.
Now ITR forms have been amended to incorporate the effect of these amendments in the Act.
This change will impact [ITR 2, 3, 5, 6]
Refer: www.taxmann.com
The Finance Act, 2018 withdrew this exemption by inserting a new Section 112A with effect from Assessment Year 2019-20. Tax is levied under this provision at the concessional rate of 10% on long-term capital gains arising from transfer of said securities, if long-term capital gain exceeds Rs. 1 lakh.
Section 112A provides relief to an assessee who has acquired the aforesaid capital assets before February 1, 2018. In that situation, the cost of acquisition of such assets shall be taken to be higher of the following:
a) Actual cost of acquisition of equity shares/units
b) Lower of FMV of such asset as on 31-01-2018 or full value of consideration received as a result of transfer of such assets.
Now ITR forms have been amended to incorporate the effect of these amendments in the Act.
This change will impact [ITR 2, 3, 5, 6]
Refer: www.taxmann.com
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