Capital Gain on Sale of Private company's shares

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This discussion clarifies the tax implications of selling private company shares. A Rs. 15 lakh profit from shares bought in 2021 and sold in 2025 is considered Long-Term Capital Gain (LTCG) and is taxable at 12.5% without indexation. Exemption under Section 54F is possible by reinvesting the total sale proceeds into a residential property within specific timeframes: purchase within two years or construction within three years from the sale date.

RAJA P M

RAJA P M (Querist)

17 December 2025 Hello Experts,

I bought shares in a private limited company on 06/09/2021. And i sold the shares on 08/12/2025.
I earned profit Rs. 15 lakhs.
How can I pay Tax on It...?
Can I claim exemption as per "Exemption from Capital Gain"????

Please give your expert opinion and guide how it's

Thanks in Advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 December 2025 Your profit of Rs. 15 lakhs from the sale of unlisted shares is considered a Long-Term Capital Gain (LTCG) and is taxable at 12.5% without indexation.
Yes, you are eligible to claim an exemption under Section 54F if you reinvest the sale proceeds into a residential property.

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RAJA P M

RAJA P M (Querist)

18 December 2025 Thank You Sir.
I'm very happy to see You after a long time...

Which amount to be invest like that profit amount or full amount (capital invested + Profit)...?
Is that invest in residential land or only in house property?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 December 2025 1. To claim exemption u/s. 54F you need to invest total sales proceed to claim 100% CG/profit exemption. Otherwise the exemption will be in the ratio of amount invested to the total sales proceeds.
2. Actually the investment should be in house property. You can purchase land provided you intend to construct HP over it.

RAJA P M

RAJA P M (Querist)

19 December 2025 1. Okay Sir, Actually i think it's on that profit amount only.

2. any time limit is available for this investing in CG claim or will purchase immediately on or before 31/03/2026...?

Please explain Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 December 2025 You should flat purchase within two years, or construct HP within three years.

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