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How is capital gains tax calculated for an equity share bought 20 years ago (listed, STT paid), delisted 10 years ago and redeemed in 2023-24? Is indexation applicable? - Sudhakar Kolangarth
Since you had originally bought the equity shares 20 years back, here is how you would be taxed:
- Your capital gains would be taxed at 20 per cent with indexation under the relevant sections of the Income Tax Act.
(Any unlisted share held for over 24 months is treated as a long-term capital asset. Those held for less than 24 months are short-term capital assets. In this case, any gains from sale are taxed at slab rate.) - Since the shares were unlisted at the time of sale, you need not pay Securities Transaction Tax (STT). That's because STT is not applicable for unlisted shares.
Also read: Should I disclose my PF payout while filing income tax returns?
This article was originally published on July 09, 2024.
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