SHARES IN PVT LTD COMPANY

Dear Experts,

One of my friend have 5℅ shares in pvt ltd company. He is only share holder and employee of the company.

Now, He want to sell the shares. What are the tax implications of this sale of shares..?
Replies (2)
Quick Summary
If you own shares in a private limited company and are looking to sell them, it's important to understand the tax implications. The sale of shares will likely result in a capital gain. Whether this is classified as short-term or long-term depends on how long you've held the shares. Gains from shares held for over 24 months are considered long-term and taxed at 20% after indexation.

Sell the shares capital gain Wil arise short term or long term depending upon the tenure of holding.

In case of unlisted securities, if the shares are sold within 24 months of the purchase, it would be considered as Short Term Capital Gain and if the shares are held for a period of more than 24 months , it i considered as the Long Term Capital Gain.

 

Long Term capital Gain is taxed @ 20% after the indexation.

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