Indexation benefits

If listed shares are transferred off market, the rate of tax will be 10% without indexation, or 20% with it.

For unlisted shares, LTCG is applicable at 20% after considering the benefit of indexation.  If the asset is of short term in nature, STCG on listed securities (on which is STT is paid) is taxable at 15%, while on unlisted securities  the tax payable is as per slab rate applicable to the taxpayer.

Neha,

A private company can claim benefit of indexation, even shares are transferred to its director.

and rate of taxes is applicable as said by Mehul Chudasama.

As per third proviso to section 48, nothing contained in the second proviso (i.e. indexation on COA (aquisition) or COI (improvement)) shall apply to the long-term capital gain arising from the transfer of a long term capital asset being bond or debenture other than capital indexed bonds issued by the Central Government.

Hence, there is no restruction for shares to take indexation benefit. However, the defintion of short term capital asset u/s 2(42A) has been amended w.e.f. FY2014-15 to make unlisted shares as short term capital asset for the period of holding up to and and equal to 36 months.