Central Government notifies all transactions of acquisition of equity share entered into on or after the 1st October, 2004; which are not chargeable to Security Transaction Tax (STT) vide CBDT Notification No. 43/ 2017 dated 5th June 2017
1) Section 10(38) of the Income Tax Act, 1961 provides exemption in respect of “any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust where such transaction is chargeable to STT”
2) Finance Act, 2017 made an amendment in Section 10(38) that exemption u/s 10(38) will not be available to : any income arising from the transfer of a long-term capital asset, being an equity share in a company, if the transaction of acquisition is entered into on or after the 1st day of October, 2004 and such transaction is not chargeable to STT. However, power has been given in the section to Central Government to notify the acquisition transactions which will not fall within this amendment and benefit of exemption u/s 10(38) will be available to them.
3) This notification shall come into force with effect from the 1st day of April, 2018 and shall accordingly apply to assessment year 2018-19 and subsequent assessment years.