You asked: How do you calculate capital gains in case of unlisted shares?

How is capital gains tax calculated on shares?

Short-term capital gains can be computed by subtracting the following 3 items from the total value of sale:

  1. Full sales value – Rs. 48,000.
  2. Brokerage at 0.5% – Rs. 240.
  3. Purchase price – Rs. 38,750.

Is STT applicable on unlisted shares?

STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. … It also includes unlisted shares sold under an offer for sale to the public included in IPO and where such shares are subsequently listed in stock exchanges.

Can I sell unlisted shares after listing?

After 01.04. 2019, SEBI has mandated that no physical shares can be sold. If somebody wants to sell its shares, then first, it must be converted into Demat form. So in the unlisted market, shares are always credited in Demat form only.

How do you calculate capital gains and loss on shares?

Step 1: Compute the fair market value of your investment. To compute this value multiply your number of shares or MF units with their respective highest prices as on January 31, 2018. Step 2: Take the actual sale value of your investment. Step 3: Choose the lower value out of the above two.

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How do I avoid capital gains tax on shares?

You can minimise the CGT you pay by:

  1. Holding onto an asset for more than 12 months if you are an individual. …
  2. Offsetting your capital gain with capital losses. …
  3. Revaluing a residential property before you rent it out. …
  4. Taking advantage of small business CGT concessions. …
  5. Increasing your asset cost base.

How can I avoid paying capital gains tax on shares?

Ten ways to reduce your capital gains tax liability

  1. 1 Make use of the CGT allowance. …
  2. 2 Make use of losses. …
  3. 3 Transfer assets to your spouse or civil partner. …
  4. 4 Bed and Spouse. …
  5. 5 Invest in an ISA/Bed and ISA. …
  6. 6 Contribute to a pension. …
  7. 7 Give shares to charity. …
  8. 8 Invest in an EIS.

How do I sell unlisted shares?

Sell Unlisted shares

  1. Step 1: A deal is proposed between unlisteddeal and seller either on WhatsApp or over email.
  2. Step 2: Seller provides their client master copy, PAN card copy, Aadhar card copy, delivery instruction slip (DIS) copy and cancelled cheque copy.

Is STT same for all brokers?

Regardless of the broker you choose for your trading needs, STT applied to your trade will be the same.

Who pays STT buyer or seller?

The STT must be paid by the company issuing the unlisted security within two months from the date of the transfer of such security. It is the responsibility of the recipient of the unlisted security to inform the company which issued such security of the transfer within 30 days from the date of transfer.

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Can we buy unlisted shares?

Unlisted shares can be bought in Demat account and it is an off-market transaction (not on the exchange) between the buyer and seller. Hence it is very important to deal with reputed/trustworthy intermediaries to avoid any counter-party risk, Kalwani said.

Can we sell IPO shares immediately after listing day?

If you sell the stock on the first day of its listing or any time in the first year, you will have to pay ordinary income tax on the gains.

Selling strategies for IPO (Post Listing)

Conditions Strategy
Average listing day gains Sell in installments
Listing day gains of 40% – 50% Sell 50% on listing day and rest in installments

How do you find the share price of an unlisted company?

The answer is a platform like UnlistedZone. UnlistedZone displays the current market price of an unlisted stock on their websites for all the unlisted stocks available for investment. In case the price is not available at the website same can be obtained from UnlistedZone by simply dropping an email.

Investments are simple