Finance Minister budget announcement provides that capital gain tax for unlisted shares. Normally capital gain tax will be available only for Listed shares.
This move significantly affect investors and shareholders of Private limited companies and also private equity holders.
Budget 2014-15 proposes to provide that an unlisted share will be considered as “short term capital asset” if held for not more than 36 months.
This is sharp contract to short term capital gain tax to 36 months from the present 12 months period.
Tax experts feels that the move of 36 months is unwarranted.
The move will create private equity funding in unlisted shares as they wanted flexibility to exit
An important fallout of the latest proposal could be that foreign private equity investors pumping money into India could start looking at post-tax returns.
This move significantly affect investors and shareholders of Private limited companies and also private equity holders.
Budget 2014-15 proposes to provide that an unlisted share will be considered as “short term capital asset” if held for not more than 36 months.
This is sharp contract to short term capital gain tax to 36 months from the present 12 months period.
Tax experts feels that the move of 36 months is unwarranted.
The move will create private equity funding in unlisted shares as they wanted flexibility to exit
An important fallout of the latest proposal could be that foreign private equity investors pumping money into India could start looking at post-tax returns.
