In an attempt to protect genuine investments, the government plans to issue an “exhaustive list“ of transactions on which the “antiabuse“ provision of levying long-term capital gains tax on share transfer in unlisted companies will not apply .
“We are taking information from all stakeholders and we will give a very exhaustive list where Section 10(38) will not be applicable. It is absolutely an anti-abuse law which we have brought in and it will be used where law is abused,“ Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said at a post Budget meeting with industry representatives.
He said genuine investors in IPO or those that come via FDI need not worry as there will be no change in policy on capital gains. “We will come out with clarification as to what kind of share transactions will be put (under this provision) so that there is no harassment,“ he said...Read more
Source web page:Economic Times