Section 10(38)
Exemption on Long-Term Capital Gains (Equity)
Quick Answer
Section 10(38) (Exemption on Long-Term Capital Gains (Equity)) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 10(38)
Provision Summary
LTCG on listed equity shares or equity-oriented mutual funds (where STT was paid) was fully exempt from tax.
Deleted
Provision Summary
NA. Deleted. Such gains are now taxable under Section 112A at 10% (or 12.5%).
Key Changes & Highlights
- Introduction of Section 112A made this massive exemption obsolete.
Related Sections
Frequently Asked Questions
What does Section 10(38) of the Income Tax Act 1961 deal with?
Section 10(38) (Exemption on Long-Term Capital Gains (Equity)) LTCG on listed equity shares or equity-oriented mutual funds (where STT was paid) was fully exempt from tax.
Is Section 10(38) of the ITA 1961 still applicable under DTC 2025?
Section 10(38) has been deleted under the Direct Tax Code 2025. NA. Deleted. Such gains are now taxable under Section 112A at 10% (or 12.5%).
What is the status of Section 10(38) under the new tax code?
Section 10(38) is marked as "Deleted" with status "Deleted". Impact: Critical - Historical marker of when the stock market became taxable again for long-term investors.
What are the key changes to Section 10(38) under DTC 2025?
Introduction of Section 112A made this massive exemption obsolete.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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