IPOs, FPOs, ESoPs exempt from STT for concessional LTCG tax
Initial public offerings, bonus, rights issues and ESoPs will be eligible for concessional rate of 10 per cent long-term capital gains (LTCG) tax even if the Securities Transaction Tax has not been paid earlier. In the 2018-19 budget, the government had after a gap of 14 years reintroduced concessional 10 per cent on LTCG tax exceeding Rs 1 lakh from sale of shares, subject to payment of Securities Transaction Tax (STT) at the time of acquiring the equities. The finance ministry also decided to exempt certain transaction from payment of STT for availing the concessional 10 per cent LTCG rate. The ministry has notified a list of carve outs which will be exempt from the requirement of paying STT. These include IPO, follow-on public offer (FPO), bonus or rights issue by a listed company, acqu...