Shares purchased Listed and Unlisted

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This discussion clarifies the distinction between short-term and long-term capital gains for both listed and unlisted shares, using a specific example of shares purchased and sold within a year. It highlights that the holding period of 12 months is crucial for classification. The content also touches upon recent tax rate changes effective from July 23, 2024, noting that while the holding period remains the same, tax rates for both STCG and LTCG have been adjusted.

Daya

Daya (Querist)

05 October 2024 shares purchased Listed and unlisted on 25th December 2022 and sold it on 25th December 2023,
whether it can be :Long term capital gain or short term capital gain in both the case.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

05 October 2024 Earlier, short-term capital gains from listed shares and equity mutual funds were taxed at 15% while long-term capital gains were taxed at 10%. Following Budget 2024, STCG will be increased to 20% from 15%. LTCG tax was also hiked to 12.5% from 10% earlier. The holding period for to classify as short-term remains unchanged at 12 months. After 12 months, the gain will be considered as long-term capital assets. The changes are effective from July 23, 2024.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

05 October 2024 In the example cited above the gain of listed shares had been LT, while that of unlisted shares had been ST.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

11 October 2024 Good luck ....

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