Centre seeks suggestions on long term capital gains clause

Centre seeks suggestions on long term capital gains clause

Context

Proposed clause in Income Tax act

What has happened?

The Centre has opened for public discussion its proposed clause in the Income Tax Act that would give the government the power to specify the applicability of the long term capital gains tax and the security transaction tax

New section introduced in Finance Act 2018

The Finance Act 2018 had introduced Section 112A in the Income Tax Act, to provide that long term capital gains arising from the transfer of a long term capital asset, if it is an equity share in a company, be taxed at 10% of the value of the gains exceeding ₹1 lakh, only if securities transaction tax (STT) has been paid on the acquisition and transfer of such capital asset