The Central Board of Direct Taxes (CBDT) has clarified the various issues related to the proposed new tax regime for the taxation of long-term capital gains as FAQ. CBDT has clarified that the benefit of inflation indexation of the cost of acquisition would not be available for computing long-term capital gains under the new tax regime.The tax will be levied only upon transfer of the long-term capital asset on or after 1st April, 2018. The long-term capital gains will be computed by deducting the cost of acquisition from the full value of consideration on transfer of the long-term capital asset. The cost of acquisition for the long-term capital asset acquired on or before 31st of January, 2018 will be the actual cost. Here is the copy of CBDT's Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018.

Source: dna February 04, 2018 18:22 UTC