Personal Finance

Concessional LTCG tax

Compiled by ClearTax | Updated on October 07, 2018 Published on October 07, 2018


The Finance Act 2018 has, with effect from April 1, 2018, imposed a concessional rate of tax of 10 per cent on long-term capital gains made on sale of equity shares and units of MFs. Further, such concessional tax rate would apply only if Securities Transaction Tax (STT) has been paid at the time of acquisition and transfer of the equity shares. However, with an objective of extending the benefit of the concessional tax rate to genuine cases where STT could not have been paid, the section confers powers on the government to notify transactions which are entitled to take this benefit without STT payment. In this regard, the government recently issued the final notification listing the transactions, the gains on which would be liable for the concessional tax rate even without payment of STT. These include IPOs, FPOs, bonus or rights issues by a listed company, acquisition approved by court/NCLT/SEBI/RBI and acquisition pursuant to exercise of Employees Stock Option Scheme (ESOP).

E-way bill portal revamped


The e-way bill portal has undergone certain validation changes with effect from October 1. The changes are aimed at enhancing the user experience in the online generation of e-way bill (EWB-01). Henceforth, users are not required to enter the State of ‘Bill to’ and ‘Bill from’ manually. It will be auto-populated based on the PIN code.

In addition to this, users can now select the tax rates based on the HSN (Harmonised System Nomenclature) code entered, which will populate values for CGST and SGST, or IGST and cess, automatically.

Where an e-way bill is compulsorily required and the supplier tries to generate ‘Part-A Slip’, they must now compulsorily enter the transporter ID to assign a transporter, where the vehicle details are unavailable. As per the new rule, an e-way bill can be generated by the taxpayer only after entering Part-B.

The user generating the e-way bill will receive an SMS alert if the total invoice value of EWB exceeds ₹10 crore.

New LLP incorporation forms


The Ministry of Corporate Affairs is re-engineering the process of incorporation of limited liability partnerships (LLPs). New incorporation forms are applicable to LLPs from October 1. A web service named RUN-LLP (Reserve Unique Name - Limited Liability Partnership) has been floated to help LLPs reserve a unique name for themselves. This has replaced the erstwhile Form 1. Form 2 has been replaced with FiLLiP (Form for incorporation of Limited Liability Partnership). The new forms help users to not only incorporate their LLP but also apply up to two DPINs/DINs (Designated Partner Identification Number/Director Identification Number).

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