Capital gains on unlisted company shares

hi

My client has had a pvt company since 2004 march .

He has just sold his shares and has had a capital gain of 1266000.

What will be his tax liability , 10% or 20%  and can he use the indexing benefit to save tax 

Regards

 

Replies (3)

/forum/long-term-capital-gain-on-unlisted-shares-46852.asp

refer to the link.......... u will find ur answer

If shares (listed or unlisted ) are held by the tax payer for more than 12 months, then gains arising from their sale  are treated as long term capital gains. If the period of holding is lower, then such gain is treated as short term capital gains. 

tax rate on unlisted shares- LTCG @ 20%with indexation and in case of STCG -normal slab rate 

in this case , Long term capital gains @ 20% with indexation 

20 %...indexation is available..

10% is available in case of listed shares sold outside the exchange if indaxation benefit is nt taken...its optional...bt in dis case 20% rate is applicable...

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