Govt likely to announce clarification today for Long Term Capital Gains taxhttps://indianexpress.com/article/business/govt-likely-to-announce-clarification-today-for-long-term-capital-gains-tax-5053261/

Govt likely to announce clarification today for Long Term Capital Gains tax

"The government may look to do something to protect small domestic investors if equity markets continue to fall,” a senior government official said.

clarification for Long Term Capital Gains (LTCG) tax
Finance Minister Arun Jaitley had in his Budget speech announced that all long term investment gains of over Rs 1 lakh, beginning February 1, 2018 will attract a long term capital gains tax at the rate of 10 per cent.

The government is expected to announce some clarification for Long Term Capital Gains (LTCG) tax by the end of the day, as it aims to protect the interests of small investors amid the rout in stock markets.

“The government may look to do something to protect small domestic investors if equity markets continue to fall,” a senior government official said.

Apart from considering providing indexation benefit, the government is also mulling other options and is likely to clarify in a tweet.

Finance Minister Arun Jaitley had in his Budget speech announced that all long term investment gains of over Rs 1 lakh, beginning February 1, 2018 will attract a long term capital gains tax at the rate of 10 per cent. However, all gains made up to January 31, 2018, have been grandfathered implying that no tax will be imposed till that date.

The CBDT in a set of FAQs has clarified that new tax regime will be applicable to transfers made on or after April 1, 2018 and the transfer made between February 1, 2018 and March 31, 2018 will be eligible for exemption under clause (38) of section 10 of the Income-tax Act.