Exemption of long term capital gains tax (Anti-Abuse Measure for Penny stock cases) :

CLAUSE(S) OF FINANCE BILL, 2017	PARTICUL ARS OF AMENDME NTS	SECTION	AMENDMENT / NEWLY INSERTED	APPLICABLE W.E.F.	BRIEF OF AMENDMENT
6	Exemption of long term capital gains tax (Anti-Abuse Measure for Penny stock cases)	Sec 10(38) Proviso Inserted	Amended	01.04.18	it is proposed to amend section 10(38) to provide that exemption under this section for income arising on transfer of equity share acquired or on after 1st day of October, 2004 shall be available only if the acquisition of share is chargeable to Securities Transactions Tax under Chapter VII of the Finance  No 2) Act, 2004. However, to p rotect the exemption for genuine cases where the STT could not have been paid like acquisition of share in IPO, FPO, bonus or right issue by a listed company acquisition by non-resident in accordance with FDI policy of the Government etc., it is also proposed to notify transfers for which the condition of chargeability to STT on acquisition shall not be  applicable.Finance Bill  silent on Off Market and ESOP  transactions.