As we all know that the exemption provided under section 10(38) is being misused by certain persons for declaring their unaccounted income as exempt long-term capital gains by entering into sham transactions. Many judgements of various court were also pronounced in favour of assessee on account of long term capital gain on penny stocks.
With a view to prevent this abuse, the Government has come up with New Regime of Taxation of Long Term Capital Gains on sale of equity share, unit of equity oriented funds and unit of the business trust u/s 112A of the Income Tax Act, 1961 with effect from 01.04.2018
Read more on: https://taxguru.in/income-tax/analysis-amendment-section-1038-finance-act-2017-notification-432017.html
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