It on sale of unlisted shares (private ltd company)

indexation benefit will be available to the assesee and 20 % tax would be levied.

Dear Ashish, thank you for your kind response. 

My understanding is that Capital Gain is calculated as Sell Price – Indexed Purchase Price

I understand how indexation works for properties etc but how does one compute the indexed purchase price for shares in a company one founded himself ?

I mean these shares were not bought from anyone. This person founded this company and issued these shares to himself 5 years back and now he is selling it.

Will the face value of the shares be considered for calculating the indexed purchase price?

Thanks in advance. 

yes the face value and if shares were bought at premiium then premium amount will be the cost of purchase.

In other words the price he paid to the company will be considered