LTCG on stocks purchased before 2004

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My dad is a senior citizen and he has many long term share holdings , which he had purchased in 1980s, 1990s and has held on to those stocks . After the recent changes to LTCG provisions , Regarding STT need to paid during purchase for LTCG to be availed , My dad's CA says that he must pay the capital Gains Tax for his stock if sold as for purchases made in 1980s , 1990s STT has not been paid on those during purchase .

We disagree with the interpretations of the CA , can you please clarify abouty this .

Question :
Would my dad has to pay capital gains tax for stock purshased on stock market currently held in demat account in 1980s, 1990s if sold now .

Sec.10(38) of the Income Tax Act provides that income arising from transfer of long term capital asset being an i) equity share in a company; ii) unit of equity oriented fund; and iii) unit of business trust, where transaction of sale is chargeable to Securities transaction tax (STT) is exempt from capital gain tax.

As per the amendment inserted by Finance Act 2017, capital gains exemption u/s.10(38) shall not apply to any income arising from the transfer of a long-term capital asset, being an equity share in a company, if the transaction of acquisition is entered into on or after the 1st day of October, 2004 and such transaction is not chargeable to securities transaction tax (STT).

Accordingly, shares purchased in 1980s or 1990s from the stock market will not be hit by Finance Act 2017 amendment. Accordingly, capital gains arising on sale of these shares sold through the stock exchange (i.e. sale effected by paying STT) will be exempt u/s 10(38).

Pls see page 22 of the Memorandum Explaining the Provisions in The Finance Bill, 2017 ( http://indiabudget.nic.in/ub2017-18/memo/memo.pdf ) for the rationale to introduce the amendment.

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