Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Dec 06, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Asked by Anonymous - Dec 04, 2023Hindi
Listen
Money

I have question on capital gain from unlisted/start up shares, what can i do to save capital gain tax?

Ans: Firstly determine whether the unlisted shares are long-term capital assets or short-term capital assets.

If the unlisted share have been held for more than 24 months, then it’s a long-term capital asset taxed at a flat rate of 20% with the benefit of indexation. Else, it is short-term capital asset and the gains would be taxed at the rate of 15%, if securities transaction tax is paid at the time of sale. In any other case, it would be taxed as per your tax slab.

To minimize the tax liability on sale of unlisted share you can opt for the following strategies:-
• Staggered selling: Consider selling your unlisted/startup shares in tranches over several years to spread out your taxable income and avoid falling into a higher tax bracket.
• Set off Capital Gain with any other Capital loss incurred on the sale of any capital asset.
• Also, Section 54F of the Income Tax Act, 1961, allows you to claim exemption from tax on long-term capital gains arising from the sale of any capital asset (except residential property) if you reinvest the entire net sale proceeds in the purchase or construction of a new residential property in India.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Latest Questions
Krishna

Krishna Kumar  |358 Answers  |Ask -

Workplace Expert - Answered on Jul 26, 2024

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x