Indexation Benefits on Capital Gains — An Analysis
by Bharathi Krishnaprasad* and Krishna Laasya**
Long Term Capital Gains
Long term capital gains exempted from income tax; non-disclosure will not cause prejudice to interest of revenue or loss of revenue: Gauhati HC
The twin conditions, i.e., firstly, the order being erroneous and secondly, the order being prejudicial to the interest of revenue, must exist before power under Section 263 of the Income Tax Act, 1961 is exercised.
No tax on Equity Share Transfers made before 31-03-2018: FAQs released on Taxation of Long Term Capital Gains proposed in Finance Bill, 2018 [Read FAQs]
The existing regime has led to significant erosion in tax base resulting in revenue loss and the problem has been further compounded