The income tax (I-T) department has put out a draft notification specifying transactions, which will be able to benefit from the grandfathering clause under the long-term capital gains (LTCG) tax provision introduced this year even where securities transaction tax (STT) is not paid.
The Finance Act 2018 had levied a 10% capital gains tax on transfer of an equity share, or a unit of an equity-oriented fund or a unit of a business trust, wherein the gains exceed Rs1 lakh. However, it was only applicable to cases wherein securities transaction tax was applicable.