Capital Gain on Sale of Unlisted Shares?

Capital Gain on Sale of Unlisted Shares?

Unlisted Stock is not listed on any recognized stock exchange. Thus, the Company does not pay STT i.e., Securities Transaction Tax on such shares.

  1. Long Term Capital Gain (LTCG): If an investor sells an unlisted stock held for more than 24 months, gain or loss on such sales is a Capital Gain or Capital Loss.

  2. Short Term Capital Gain (STCG): If an investor sells an unlisted stock held for up to 24 months, gain or loss on such sale is a Short-Term Capital Gain (STCG) or Short-Term Capital Loss (STCL).


Income Tax on Unlisted Shares

Income Tax on Trading in unlisted shares is similar to the tax treatment of other capital assets. The following are the income tax rates on the sale of unlisted shares of a Domestic Company or Foreign Company.

  • LTCG – 20% with Indexation
  • STCG – taxed as per slab rates

 Capital Gain Tax : A Complete Guide - Click on the link for more information.

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