A notification from the Central Board of Direct Taxes (CBDT) on 5 June said that barring a few exceptions transactions of acquisition of listed equity shares on or after October 2004 which are not chargeable to securities transaction tax (STT) would not come within the purview of the amendment to section 10(38) of the Income Tax Act contained in Finance Act, 2017. The amendment stated that the long-term capital gains tax exemption on transfer of listed equity shares can be claimed only if the acquisition of shares was chargeable to STT in addition to the transfer itself being chargeable to STT.
