The Central Board of Direct Taxes (CBDT) has issued 24 frequently asked questions (FAQs) on long term capital gains (LTCG) taxation on equity shares proposed in the recent Union Budget.

It may be recalled that the Finance Bill 2018 --introduced in Lok Sabha on Thursday last -- had proposed 10 per cent tax on long term capital gains on equity shares.

CBDT has now clarified that the proposed regime would apply where the equity is held for a minimum 12 months and the securities transaction tax (STT) is paid at the time of transfer.

However, for the shares acquired after October 1, 2004, STT is required to be paid even at the time of acquisition, CBDT has said.

The Central Board of Direct Taxes has also clarified that "grandfathering" of gains up to January 31 will apply to foreign institutional investors (FIIs) also.

FAQs have clarified on the point of chargeability, method for calculating LTCG, determining the cost of acquisition for assets acquired on or before January 31, 2018, and aspects around determining fair market value.