India Inc seeks leeway on capital gains tax proposal

Wants exclusion of inter-se transfers, other transactions done outside exchange platform from tax

India Inc has sought exemptions and more clarity on the government's proposal to levy capital gains tax on shares acquired through non-payment of securities transaction tax (STT).

According to sources, the Central Board of Direct Taxes (CBDT) has received over a dozen recommendations for widening of the 'negative list' proposed in the draft notification.

Earlier this month, the CBDT had proposed only three scenarios in which capital gains tax will be levied. However, one of the conditions, that listed shares not purchased from stock exchanges would be liable for tax, has created confusion among market players.

Inter-se promoters' transfer among group entities; direct