IPO Listing Gain: Tax on IPO Gains FY 2024-25

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Investors invests in IPO with an intention to get some good listing gain. 

Now lets, how much tax is applicable on it?

With effect from FY 24-25, there will be only two tax rates:

  • 15% Tax : If transfer taking place till 22nd July 2024.
  • 20% Tax : If transfer taking place on or after 23rd July 2024. 
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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.

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