CBDT Clarifies Law On ‘Grandfathering’Clause Of Long-Term Capital Gains To Non-Resident And FII Assessees

In an article titled “Grandfather clause in LTCG: Why it may be time to call up your tax lawyer”, it was pointed out that the grandfathering of past returns promised by Finance Minister Arun Jaitley in his budget speech is missing from the fine print of the bill in the context of foreign investors.

The drafting error created an uproar amongst taxpayers at the shoddy drafting of the Finance Bill 2018.


(FM Arun Jaitley explains long term capital gain)

Pursuant thereto, the Income-tax department has clarified that the Long-term Capital Gains on listed equities arising upto 31.01.2018 has been grandfathered for resident &non-resident assessees (incl. Foreign Institutional Investors) as per clause 31 &32 of the Finance Bill, 2018.

However, some taxpayers are still unhappy with the clarification provided by the Income-tax department.


3 comments on “CBDT Clarifies Law On ‘Grandfathering’Clause Of Long-Term Capital Gains To Non-Resident And FII Assessees
  1. N G Nileshwar says:

    It appears that FM is not satisfied with the FATHER (BAAP) clause. The BAAP that I refer to is the Bureaucracy. Hence the clause.
    The bureaucracy makes way for getting back more discretion, which this Govt. should have done away with.
    MINIMUM ……….. MAXIMUM………
    This is ease of of BUREAUCRACY

  2. Good decision by the CBDT. Better late than never. They must be proactive and nip controversies in the bud by providing speedy clarification.

  3. Pratip Basu says:

    It is unethical to change the law over night. Like P notes, FM should have given one year’s time to enable the assesses to plan scuffling of their Portfolio.
    Secondly, Senior citizens earn mainly from Dividend, interest and capital gains. While dividend income more than Rs.10 lacs been taxable, interest more than Rs. 50000 is made taxable but LTCG is made exempt only up to Rs.1 Lac is not a equitable proposal. It should be at least Rs. 5 Lacs

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  1. […] here to download the FAQs dated 4th February 2018 issued by the CBDT See also: CBDT Clarifies Law On ‘Grandfathering’ Clause Of Long-Term Capital Gains To Non-Resident And FII…and Budget 2018: The return of tax regime for Long-Term Capital Gains in a new […]

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