Applicabilty of section 10 (38)

Section 10(38) states that any income arising from the transfer of a long term capital asset, being an "equity share" in a company or a unit of an equity oriented fund where -

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which chapter VII of Finance Act 2004 comes into force AND

(b) such transaction is chargeable to securities transaction tax under that chapter.

In your case, redemption of preference share shall not be covered under section 10(38) as the section talks only about EQUITY SHARES.