Under the existing provisions of Section 112, long term capital gains arising from transfer of securities, whether listed or unlisted, shall be taxed at the rate of 10%. There was an ambiguity as to whether shares of a private company are “securities” for the purpose of this Section.
It is hereby proposed to clarify that long-term capital gains arising from the transfer of shares of a private company shall be chargeable to tax at the rate of 10 per cent.
The amendment shall apply in relation to assessment year 2017-18 and subsequent years.
