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Budget 2023: Union Budget 2023 may bring tax parity in capital gains on listed and unlisted equities

23 January 2023

Under the existing capital gains taxation regime, beneficial tax rates have been provided for income arising from the sale of listed equity shares. Even the period of holding of shares by the equity investors, which determines the applicable tax rates, is different in the case of listed shares and unlisted shares.

Gains on listed shares are considered long-term if held for more than 12 months and taxed at a concessional rate of 11.96 per cent. Whereas gains on unlisted shares are considered long-term if held for more than 24 months and are taxable at the rate of 23.92 per cent. Short-term gains on listed shares are taxable at 17.94 per cent and on unlisted shares are taxable at applicable slab rates.