Finance Act 2017 has brought in major change in allowance of long term exemption on sale of listed shares under section 10(38) .The changes brought is result of heavy abuse of the scheme of exemption under sec. 10(38) by tax evaders .Therefore , government identified major routes of tax evasions and made amendments in rules for exemption u/s 10(38) by notification dated 5th June 2017 [[F. No. 43/2017/F. No. 370142/09/2017-TPL] . Under the new law effective from 01/04/2017 (assessment year 2018-19 ) , a number of sale transactions of listed stocks will be taxable now. Non-allowance of exemption of listed shares is dependant on the manner in which the sold shares were acquired . This post is going to simplify the new law of tax exemption under sectio 10(38) .