Corporate Updates 26.04.2018


MCA:

The Ministry of Corporate Affairs has designated 9th Court of Additional District and Sessions Judge, Kanpur Nagar as Special Courts for the State of Uttar Pradesh for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more under the Companies Act, 2013.

CBDT:

The Finance Act, 2018 has withdrawn the exemption under clause (38) of Section 10 of the Income Tax Act, 1961 and has introduced a new section 112A in the Act, to provide that long term capital gains arising from transfer of a long-term capital asset being an equity share in a Company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at 10 percent of such capital gains exceeding one lakh rupees. The said section, inter alia, provides that the provisions of the section shall apply to the capital gains arising from a transfer of long-term capital asset being an equity share in a company, only if securities transaction tax (STT) has been paid on acquisition and transfer of such capital asset.

However, to provide the applicability of the tax regime under Section 112A of the Act to genuine cases where the STT could not have been paid, it has also been provided in sub-section (4) of Section 112A of the Act that the Central Government may specify, by notification, the nature of acquisitions in respect of which the requirement of payment of STT shall not apply in the case of acquisition of equity share in a company. Further, draft of notification proposed to be issued under Section 112A (4) of the Act has been available on www.incometaxindia.gov.in. The Board has invited comments/ suggestions on the draft notification by 30th April, 2018 at the e-mail address dirtpl2@nic.in.

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