Under the existing regime, long term capital gains arising from transfer of long term capital assets, being equity shares of a company or a unit of equity oriented fund or a unit of business trust, is exempt from income tax under clause (38) of section 10 of the Act. However, transactions in such long-term capital assets are liable to Securities Transaction Tax (STT). The Finance Bill, 2018 proposes to withdraw the exemption under clause (38) of section 10 and to introduce a new section 112A in the Income-tax Act, 1961 so as to provide that long-term capital gains arising from transfer of such long-term capital asset exceeding one lakh rupees will be taxed at a concessional rate of 10 percent. Since the introduction of the Finance Bill, 2018 on 1st February, 2018, several queries have been raised in different fora on various issues relating to the proposed new tax regime for taxation of long-term capital gains. The Central Board of Direct Taxes (CBDT) has issued responses to these queries in the form of Frequently Asked Questions (FAQs) dated 4th February, 2018 which have been uploaded on www.incometaxindia.gov.in.