Taxation
of shares in recent times has undergone number of changes. Finance Act 2004
sought to exempt long term capital gain on equity shares and equity oriented
funds in the hands of all types of investors
including FIIs, institutional investors and other foreign nationals by
introducing section 10(38). However this seemingly simple exemption clause with
times has unfolded a number of issues . This article is a humble attempt to
deal with a few taxation issues pertaining to income as well loss arising from
long term capital assets in the form of equity shares and equity oriented funds
