Master in Accounts & high court Advocate
9615 Points
Posted on 16 December 2024
When it comes to taxing IPO listing gains, the tax rate depends on the holding period and the date of transfer.
If you sell your IPO shares within 12 months, the gains are considered short-term capital gains (STCG) and are taxed at 20% if the transfer takes place on or after July 23, 2024.
However, if the transfer occurs before July 22, 2024, the tax rate is 15%.¹ ² Here's a breakdown of the tax rates:
- *Short-term Capital Gains (STCG)*: 20% tax rate if the transfer takes place on or after July 23, 2024. -
*Long-term Capital Gains (LTCG)*: Exempt up to ₹1.25 lakhs per annum. Above this limit, LTCG is taxed at 12.5% without indexation benefits. Keep in mind that these tax rates are applicable for FY 2024-25.