Users may take advisory to assess and validate their tax liability from their respective tax consultant. However, for sake of reference, we have mentioned below tax rates as may be applicable in case of individuals and corporate while selling their unlisted shares.  

• LTCG on sale of unlisted shares is taxed at 20 per cent, while in case of short-term capital gains it is 30 percent assuming that the taxpayer falls in the highest slab in case of individuals. However, in case of corporate, the marginal rate of tax as applicable.

• Period of holding for the purpose of computation of long-term liability is more than 24 months from the date of investment.  

• Income arising from transfer of unlisted shares would be taxed under the head ‘Capital Gain’, irrespective of period of holding. However, the government had introduced a TCS of 0.1% on sale of goods worth Rs 50 lakh and above with effect from 1st Oct 2019. This is virtually like STT (Securities Transaction Tax) for unlisted shares.