Even If STT Not Paid At Time Of Acquisition, Trust Entitled To Claim LTCG Exemption: ITAT

In a recent ITAT decision, the tribunal ruled on the applicability of Long-Term Capital Gains (LTCG) exemption under the Securities Transaction Tax (STT) regime. The case involved a dispute over whether the acquisition of shares by a trust could benefit from LTCG exemptions. The ITAT upheld the claim, affirming that shares acquired by the trust, which were subject to STT, qualify for LTCG exemptions under the Income Tax Act. This ruling underscores that the trust's acquisition of shares, in compliance with STT regulations, entitles it to the same tax benefits as individual investors. The decision emphasizes consistency in the application of tax exemptions for entities engaged in similar transactions.