Tax treatment for long term capital gains on equity shares

Hemal Dedhia (Internal Audit) (21 Points)

17 August 2017  

I have a query regarding Capital gains on equity shares. Request members to give me their opinions on the tax treatment. 

Equity shares of a listed company have been purchased in the year 1992. On these shares, bonus issue was received in the year 2000. Rights issue was also issued and taken by the investor. When the original investment and the bonus and rights were taken was before 2004 (i.e. when STT was implemented). 

Now in the year 2016 - 17, the shares have been sold and STT was paid. 

My query was that the Long term capital gains which arise from sale of the equity shares (original and bonus and rights) on which STT has been paid... Will the LTCG be exempt from tax as per Section 10 (38)? 

I have read some articles but not been able to arrive at a conclusion for the same. Awaiting your responses Thanks in advance.