The Finance Act, 2003 provides that any long-term capital gain regarding eligible equity shares in a company and purchased on or after 1-3-2003 but before 1-3-2004 would be exempt from tax. Eligible equity share means (i) any equity share in a company being a constituent of BSE-500 Index of the Stock Exchange, Mumbai as on 1-3-2003 and such transaction of purchase and sale are entered into on a recognised stock exchange in India; and (ii) any equity share in a company allotted through a public issue on or after 1-3-2003 and listed in a recognised stock exchange in India before 1-3-2004 and such transaction is entered into on a recognised stock exchange in India. |