Abhishek Securities

In a fresh boost to startups, the government on Thursday inserted an amendment to the Finance Bill to provide for capital gains tax exemption if shares of an unlisted company were held for more than two years. Currently, there is no capital gains tax on share transactions in listed companies if those stocks are held for 12 months. But shares of unlisted entities face capital gains tax of 20% even after three years. The tax treatment has been a major area of concern for international investors, several of whom are pumping billions into Indian companies. And, the move is expected to spur M&As. The amendment was introduced as finance minister Arun Jaitley introduced other ones to the Bill, which was later cleared by the Lok Sabha. Most of the other amendments were in the nature of clarifications. For instance, buyers will have to pay 1% tax on cars which cost over Rs 10 lakh, which will be collected by the seller. This, officials said, was a clarification, although the move is mea...

As per Income Tax Law, Income earned from Sale of shares could be held as either Business Income or capital gains depending upon the facts of the case which had led to a lot of litigation over the years. The disputes persisted as assesses were finding it difficult to prove the intent of acquiring these shares. In order to avoid disputes and take a consistent view in assessments of such income, CBDT has decided that income arising from transfer of unlisted shares would be considered under the head ‘Capital Gain’. It may be noted that a similar instruction had earlier been issued by CBDT regarding tax treatment of investment in listed shares but this instruction for unlisted companies is more beneficial as the requirement of period of holding has also been dispensed with. It is however, clarified that this would not be necessarily applied in 3 situations where: i. The genuineness of transactions in unlisted shares itself is questionable; or ii. The transfer of unlisted shares is ...

A meeting of the Parliamentary Consultative Committee attached to the Ministry of Steel and Mines was held in New Delhi on 10-5-2016 for reviewing the functioning of HCL and MSTC Ltd. Presided over by the Minister of Steel and Mines Shri Narendra Singh tomar, the meeting reviewed the progress achieved in the field of Copper by the Hindustan Copper Limited HCL and the challenges and opportunities in Copper Sector in India. The meeting also reviewed the functioning of the revamped MSTC limited and its role in the E-Auctioning and E-Tendering processes in the Government and Public Sector Organisations. The Union Steel & Mines Minister Shri Narendra Singh Tomar chairing the meeting said that the two organizations have shown a high growth in their respective fields and are contributing hugely in the "Make in India" and "Digital India" programmes oh the NDA government. There is a huge potential for both these organisations to make more contribution towards growth in ...