15 Days Price Change
Summary
Unlisted shares are taxed differently than listed shares, the tax treatment depends on the time we held the shares.If the shares are sold in 24 months the profit will be treated as Short Term Capital Gain (STCG) and taxed at the slab that matches your income (0 to 30%), when they are sold over 24 months then profit will become Long Term Capital Gain (LTCG) which is taxed at 20% with the indexation benefit (allowing adjusted purchase price to reflect inflation and lower your tax liability). By keeping accurate records, indexing when possible and timing your sale properly you can substantially reduce your tax liability.
What is Capital Gain Tax on Unlisted SharesCapital gain on unlisted shares is the profit you make when you sell Unlisted shares of a company for a higher price than you bought them.
Example:
You buy unlisted shares of Company X at ₹200.
You sell them at ₹350.
Profit (Capital Gain) = ₹150.
Capital gains are classified based on the holding period:
Type
Holding Period
Tax Rate
Short Term Capital Gain (STCG)
Held less than 24 months
Added to your income & taxed as per your slab rate(0 to 30%)
Long Term Capital Gain (LTCG)
Held more than 24 months
20% tax rate with indexation benefit
What is Indexation
Think of your money like ice cream.
If you bought ice cream 3 years ago for ₹100 and now the same ice cream costs ₹120 it’s not because the ice cream got fancier it's because prices went up (inflation).When you sell an asset like unlisted shares after a long time, a part of the higher price you get is just because of inflation not because you actually made a real profit.
Indexation is the government’s way of saying:
Okay, we’ll pretend you bought it at today’s price so you don’t pay tax on the inflation part.
Simple Example:
Bought shares in 2020 for ₹100
Inflation has made ₹100 in 2020 equal to ₹115 in today’s 2025 value
With indexation the tax is calculated on the price you bought the shares for ₹100 not ₹115
Why it helps:
It reduces your taxable liability which means less tax to pay.
That’s why it’s available only for Long Term Capital Gains.
How to calculate capital gain on unlisted shares
Formula for STCG:
Capital Gain = Sale Price – Purchase Price – Expenses
Formula for LTCG:
Capital Gain = Sale Price – Indexed Purchase Price – Expenses
Where:
Indexed Purchase Price = Purchase Price × (CII in Sale Year ÷ CII in Purchase Year)
CII = Cost Inflation Index (given by Income Tax Dept.)
Examples-
Example 1 – Short-Term Capital Gain
Buy Price: ₹100 per share
Sell Price: ₹150 per share
Quantity: 1,000 shares
Expenses: ₹500 brokerage
Calculation:
Sale value = ₹150 × 1,000 = ₹1,50,000
Purchase value = ₹100 × 1,000 = ₹1,00,000
Capital gain = ₹1,50,000 - ₹1,00,000 ₹500 = ₹49,500
Tax: Added to your income and taxed as per your slab(0 to 30%)
Example 2 – Long-Term Capital Gain with Indexation (Easy Version)
Buy Price: ₹100 per share in 2020 (CII = 301)
Sell Price: ₹150 per share in 2025 (CII = 348)
Shares: 1,000
Expenses: ₹500
Step 1 – Adjust buy price for inflation (Indexation):
₹100 × (348 ÷ 301) = ₹115.95 per shareStep 2 – Find total adjusted cost:
₹115.95 × 1,000 = ₹1,15,950Step 3 – Find capital gain:
₹1,50,000 – ₹1,15,950 – ₹500 = ₹33,550Step 4 – Calculate tax @ 20%:
₹33,550 × 20% = ₹6,710Without indexation, the profit would have been ₹49,500 and the tax @ 20% would be ₹9,900.
With indexation, profit is ₹33,550 and tax is only ₹6,710 so you save money.(Please don’t get confused by the calculations, they are only to help you understand the logic of how unlisted shares are taxed. In most cases, your CA (Chartered Accountant) will handle the actual computation for you.)
How Capital Gain on Unlisted Shares is Reported
What it means: Reporting capital gain on unlisted shares simply means telling the Income Tax Department how much profit you made from selling them along with the dates, prices and related details so they can calculate the tax you have to pay.
Steps:
Keep Proofs Ready - Purchase agreement, sale agreement, bank statements and expense receipts.
Choose the Right ITR Form - Usually ITR-2 or ITR-3.
Fill Schedule Capital Gains -
Asset type: Unlisted Equity Shares
Enter purchase date, sale date, price and cost (indexed cost if LTCG).
If Foreign Shares - Also fill Schedule FA (Foreign Assets).
Pay the Tax - Either in advance or while filing your return.
In short: Record everything - Select correct form - Fill details - Pay tax.
(Again, don’t get confused by the process if you have any questions regarding unlisted shares just visit sharescart.com our team is always here to guide you and make things simple.)
Sell or Purchase Share (Tentative Price)
| Company | Industry | Stock P/E | P/B | Company rating | MCAP (in Cr.) | Current Price |
|---|---|---|---|---|---|---|
| Pharmeasy | e-Commerce | -1.8 | 1.8 | 4659 | 7.3 | |
| Reliance Retail | Retailing | 141.5 | 23 | 698659 | 1400 | |
| Orbis Financial | Finance - Investment | 45.2 | 9.3 | 6391 | 525 |
It is a leading global provider of BPO and IT services. Hexaware Technologies Limited provides IT consulting, software development, and business process services.
Unique Features
Incorporated in 2019, The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products.
Unique Features
Sterlite Power began on 5th May 2015 and is headquartered in Delhi. It is a leading developer & solution provider in integrated power transmission.
Unique Features
Incorporated in 2015. Signify is into the manufacturing of electric lights and light fixtures for consumers and professionals.
Unique Features
CSK is a subsidiary brand of India Cements. This company is quite popular in India as it known for its cricket team.
Unique Features
Elcid Investments Limited was incorporated on 3 December 1981 in Mumbai. It is a Non-Banking Finance Company registered with the Reserve Bank of India.
Unique Features
STUDDS is a leading manufacturer of motorcycle accessories and helmets. They become the largest helmet manufacturer (two-wheeler) in the world.
Unique Features
Mohan Meakin manufactures alcoholic beverages such as rum, whisky, beer, etc., and non-alcoholic beverages like apple juice, mineral water, etc.
Unique Features
Orbis is recognized as a leading player in the Financial Services Industry, providing Securities Services since 2009 to FDI, Corporate, HNI's.
Unique Features
Schneider Electric President Systems Limited is a designer, manufacturer and supplier of customized enclosure systems for over 30 years.
Unique Features
How Your Money Can Grow With Us
| Pre IPO Price: 130 |
IPO Price: 334 |
Listing Price: 310 |
1 Lac Invested in ICICI Prudential pre-ipo turned into 2.3 Lac after listing.
| Pre IPO Price: 400 |
IPO Price: 661 |
Listing Price: 680 |
1 Lac Invested in ICICI Lombard pre-ipo turned into 1.7 Lac after listing.
| Pre IPO Price: 210 |
IPO Price: 290 |
Listing Price: 344 |
1 Lac Invested in HDFC Life pre-ipo turned into 1.6 Lac after listing.
| Pre IPO Price: 175 |
IPO Price: 358 |
Listing Price: 597 |
1 Lac Invested in AU Small Finance Bank pre-ipo turned into 3.4 Lac after listing.
| Pre IPO Price: 60 |
IPO Price: 225 |
Listing Price: 301 |
1 Lac Invested in RBL Bank pre-ipo turned into 5 Lac after listing.
| Pre IPO Price: 200 |
IPO Price: 806 |
Listing Price: 1069 |
1 Lac Invested in BSE pre-ipo turned into 5.3 Lac after listing.
| Pre IPO Price: 60 |
IPO Price: 150 |
Listing Price: 261 |
1 Lac Invested in CDSL pre-ipo turned into 4.3 Lac after listing.
| Pre IPO Price: 545 |
IPO Price: 1101 |
Listing Price: 1990 |
1 Lac Invested in Nazara Tech pre-ipo turned into 3.6 Lac after listing.
| Pre IPO Price: 280 |
IPO Price: 300 |
Listing Price: 616 |
1 Lac Invested in Dmart Avenue pre-ipo turned into 2.2 Lac after listing.
| Price in 2019: 450 |
Current Price: 3250 |
1 Lac Invested in Reliance Retail Ltd pre-ipo turned into 7.2 Lac.
| Price in 2019: 1100 |
Current Price: 6350 |
1 Lac Invested in Tata Technologies pre-ipo turned into 5.7 Lac.
