Although investing in unlisted shares can be quite profitable, it is important to understand how they are taxed. This is a detailed examination of Taxation on unlisted shares and its effects on Indian investors. What Are Unlisted Shares? Shares of businesses that are not listed on reputable stock exchanges, such as the NSE or BSE, are known as unlisted shares. These privately traded shares frequently belong to start-ups or early-stage businesses. Taxation on Unlisted Shares in India Taxation on unlisted Shares In India differs from that for listed shares. The holding time and the type of gains earned determine the tax treatment. Short-Term Capital Gain Taxation on Unlisted Shares Gains are seen as short-term if you sell unlisted shares within 24 months of buying them. Your appropriate income tax slab rate, which can be anywhere between 5% and 30%, is applied to these gains. Long-Term Capital Gain Taxation on Unlisted Shares Gains are considered long-term if unl...
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