Section - 10(38) - Exemption of long term
capital gains tax u/s 10(38)
According to existing provisions,
capital gains arising from the transfer of shares of a company or unit of the
equity oriented fund is exempt if security transaction tax is paid.
In order to prevent sham transaction,
it is proposed to provide that exemption will be made available to the transfer
of equity shares acquired after 1st October, 2004 if the ahares had
been acquired after STT has been paid on the transaction. It is proposed to
issue notification to provide that this condition will not apply to the shares
acquired in IPO, FPO, Right issues of a listed company acquisition by
non-resident in accordance with the FDI policy of government.