LTCG tax to apply on shares sold after Apr 1, evaluation on Jan 31 price

The proposed long-term capital gains tax on equity holdings will apply on profits made from sale of shares on or after April 1, 2018, the government said on Monday.

While the tax will kick in on shares sold on or after April 1, the acquisition cost for the purpose of computing the capital gains will be the higher of the actual purchase price or the maximum traded price on January 31, it said.

Finance Minister Arun Jaitley in his Budget for 2018-19 announced levying long-term capital gains tax on profits made from share sales.

As stock prices continued to take a beating, the