Stcg on sale of unlisted equity shares

Tax queries 428 views 1 replies

What is the holding period for unlisted Equity shares for computing LTCG/STCG? Is it 12 months or 36 months? 

If it is 36 months can indexation be applied for arriving at the cost on the date of sale?

Replies (1)

If the unlisted shares are purchased :

1.  before 11.7.2014 - for 12 months holding period unlisted shares will be considered as SHORT TERM CAPITAL ASSET after that LONG TERM CAPITAL ASSET .

2. on or after 11.7.2014 - for 36 month holding period unlisted share will be considered as SHORT TERM CAPITAL ASSET after that LONG TERM CAPITAL ASSET.

 

As long as the shares are SHORT TERM CAPITAL ASSET indexation benefit will not be available.


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