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Providing tax certainty / widening tax base
from Taxmann's Budget Marathon | Corporate Taxation | E N Dwaraknath & Tapan Gupta – Partner | PwC
by Taxmann
Market linked debenture (MLD)
• New provision is proposed to be inserted to tax capital gains from market-linked debentures as short-term capital gains at normal rate at par with securities (at the respective rates in force), which were earlier taxed at 10% as long-term capital gains (effective from FY 23-24)
• Tax withholding at 10% now applicable on payment or accrual of interest on listed securities to a resident – Exemption under section 193 withdrawn
Intangible assets or any other rights
• Cost of acquisition where no consideration is paid will be ‘Nil’ and Cost of improvement of any intangible asset or other right, will be ‘Nil’ –reversing the Apex Court ruling in the case of B.C. Srinivasa Shetty
• Possible impact on sale of intellectual property and related intangibles
