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Income exempt u/s 10(38)


income exempt u/s 10(38)

The government has been walking the talk on its promise of war against black money and taking bold steps on several fronts to counter this autodesk 3ds max design 2012 product key menace.
While the final notification is similar to the draft notification in stellar phoenix linux data recovery 4.0 terms of prescribing a list of transactions, relaxation has been provided for some transactions of acquisition.
While the draft notification has provided some clarity, we hope that the final notification would address some of the issues discussed above in order to protect genuine investors and prevent undue hardship to them.
The acquisition of equity shares of a company during the period beginning from the date on which the company is delisted from a recognised stock exchange and ending on the date immediately preceding the date on which the company is again listed on a recognised.Views expressed are personal to author and the article includes inputs from Maharshi Mehta, Associate Director, M A Tax, PwC India and Harsh Shah, Associate, M A Tax, PwC India.Would continue to enjoy the benefit of exemption.To re-align the benefit granted under this section with its intent, the Finance Act, 2017 has amended section 10(38) of the ITA, to provide that exemption from income arising on transfer of long-term equity shares acquired on or after 1 October, 2004, shall be dreamweaver full version for mac available.On 5 June, 2017, the central government issued the final notification in this regard.The final notification has addressed most of the genuine transactions not covered in the draft notification.Acquisition by scheduled banks, reconstruction or securitisation companies or public financial institutions during their ordinary course of business.Prior to the Finance Act, 2017, section 10(38) of the Income Tax Act, 1961 (ITA) provided exemption on any income arising on sale of listed equity shares held for a period of more than 12 months, if Securities Transaction Tax (STT) was paid on such.Acquisition by any non-resident in accordance with foreign direct investment guidelines of the Government of India.
The draft notification has listed three broad categories of transactions barring which all other transactions to which the benefit of exemption under section 10(38) of the Act would continue to be available.
The draft notification contained a list of transactions for which the exemption under the section would not be available.
Prior to the said amendment, section 10(38) of the Act exempted capital gains arising from transfer of long term capital asset, being equity shares of a company or a unit of an equity oriented fund, on which Securities Transaction Tax (STT) was chargeable.
In view of the above, it has been notified that the condition of chargeability to STT shall not apply to all transactions of acquisitions of equity shares entered into on or after the first day of October,2004 other than the specified transactions such.The Notification has assailed many dos and donts and it is clear that the government wants to restrain any non-genuine transactions with its amendment.One such move is the amendment to section 10(38) of the Income-tax Act, 1961 (the Act thereby denying long-term capital gains exemption available hitherto to certain transactions.In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable.Acquisition under employee stock option scheme or employee stock purchase scheme framed under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.


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