Sale of shares in unlisted company
This query is : Resolved
30 July 2024
Sir, one of my client sold his shares from one unlisted pvt.ltd company. I hope, now in his hand any profit on sale of such shares, he has to pay the tax it seems, kinldy enlighten me as to how to calculate the the profit on such sale of shares ?
CA R SEETHARAMAN
(Expert)
30 July 2024
To calculate capital gains, subtract the cost of acquisition and sale expenditures from the sale price.
If an investor sells an unlisted stock that has been held for more than 24 months or two years, any gain from the sale is categorised as a Long-Term Capital Gain (LTCG).
LTCG earned from unlisted stocks is taxed at 20% with indexation. Indexation refers to a benefit where the cost of an investment is adjusted according to the inflation rate. This helps in reducing the overall tax incurred.
If an investor sells an unlisted stock that has been held for more than 24 months or two years, any gain from the sale is categorised as a Long-Term Capital Gain (LTCG).
LTCG earned from unlisted stocks is taxed at 20% with indexation. Indexation refers to a benefit where the cost of an investment is adjusted according to the inflation rate. This helps in reducing the overall tax incurred.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
