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Income from ipo - how is it taxed ?

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2017 Sir,
Suppose,
An individual has income from bank interest and FD interest .

In addition to this, he had applied for shares in some IPOs in share-stock market.
He had been allotted shares in some IPOs, and he made some profit, from selling these shares.

He has no any salary income, business income or any other income, other than mentioned above.

Que. 1 : How the income from IPOs, is taxed ?
Que. 2 : Which ITR Form he has to use, to file his Income tax return? Can he use ITR-1?

Please, guide.
Thanks.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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09 October 2017 1) IPO will be taxable under Capital Gain 2) ITR 2 to be used because you have Capital Gain

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K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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10 October 2017 I agree with Ashiwini Ji.

Listing gains from IPO will be treated as short term capital gains and tax will be paid accordingly.

ITR2 will be appropriate as you need to report capital gains in your return

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