The budget said that the benefit of exemption on long-term capital gains through investment of sales proceeds into government prescribed capital bonds would be applicable only for immoveable property and the minimum tenure of such bonds has been extended to five years from three years. Earlier, the sale of any capital asset (including property, sale of shares in unlisted companies) attracted long-term capital gains tax which was exempt if the proceeds of the sale were invested in government-prescribed capital gains bonds with a three-year tenure. To enable firms to bid for stressed assets under the IBC and aid their revival, the budget has provided some relief. This made buyers shy away from bidding for stressed assets; relief has been provided on this account,” said Suresh Surana, Founder, RSM India. The budget has said the norm would be relaxed after affording reasonable opportunity of being heard by the jurisdictional Principal Commissioner or Commissioner.

Source: The Hindu February 01, 2018 16:07 UTC