CAPITAL GAIN ON SALE OF PVT LTD COMPANY'S SHARE

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Hello Team & Experts... How are You All...???

 

I bought Pvt Ltd company's shares on 06/09/2021 and it's sold on 08/12/2025. Now, It's have CG profit of Rs.15 lakhs.

How can I pay tax on it...?

Can I claim Excemption in this profit as "Exemptions from Capital Gains"?? 

Please guide if it's possible.

Replies (2)
Quick Summary
This discussion clarifies capital gains tax on shares of a private limited company. The profit from selling shares held for over 12 months is considered a Long-Term Capital Gain (LTCG). In India, LTCG on listed equity shares exceeding Rs. 1 lakh is taxed at 10% under Section 112A, plus cess. There is no general exemption for LTCG on equity shares, only a Rs. 1 lakh exemption. The user also inquired about Section 54F exemption, which typically applies to the sale of long-term capital assets other than equity shares.

The profit is a long-term capital gain (LTCG) because you held the shares for more than 12 months (actually . 4 years). In India, LTCG on listed equity shares exceeding rlakh rs.is taxed at 10% under section 112 A (plus applicable cess). You need to report it in your Income Tax return (ITR) and pay the tax accordingly. 

No, there is no general exemption for LTCG on equity shares The only relief is the Rs.1 lakh exemption on LTCG. 

To optimize tax, ensure you have computed the gain correctly (considering cost of acquisition with indexation or FMV, and brokerage). If the shares were unlisted, different rules may apply. 

Thank You for the reply.

You said 10% tax. But, I think it's 12.5% now. Am I right??

 

My doubt is can I claim exemption u/s 54F...?

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