Ch.8 · Dividend and STT Taxation · hard
What is the 'Section 10(38)' historical provision and why was it replaced?
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EXPLANATION
Section 10(38) previously provided full exemption from LTCG on sale of listed equity shares and equity-oriented mutual funds (holding > 12 months) on which STT was paid. This exemption was removed from April 1, 2018 by Finance Act 2018, and replaced by Section 112A which introduced 10% LTCG tax on gains above ₹1 lakh (later revised to 12.5% on gains above ₹1.25 lakh under Finance Act 2024).
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