Short-term capital gain taxes to be paid on Studds Accessories Limited unlisted shares?

Studds Accessories Limited FAQs No Comments

Short-term capital gain to be paid on Studds Accessories Limited unlisted shares is as per the normal tax slab of investors. That means if your income falls under 10%, you need to pay 10% capital gain tax. If it falls under 20%, you need to pay 20% capital gain tax, and so on.

A capital gain occurs when an investor sells shares for a higher price than what they originally paid for those shares. On the other hand, in the unlisted market, a short term capital gain is the profit made from the sale or transfer of shares that occurs within a period of two years. The purchase of an unlisted share followed by its sale after a period of two years results in what is known as a long-term capital gain.

The capital gains for listed and unlisted shares are different. For unlisted shares if your holding period is less than two years, a short-term capital gain is applied. For listed shares, short-term capital gains are taxable at a rate of 15% if you sell within a year.

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