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Ltcg on shares purchased prior to ipo

Hitanshu Agrawal (Investment Banker) (28 Points)

31 August 2017

I had purchased shares (dematerialized) of RBL in 2011, prior to the IPO. Post lapse of lock-in period, I have sold the shares yesterday. Will I have to pay any LTCG?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177818 Points)
Replied 31 August 2017

Whether STT paid over the purchase? Or whether the purchase was through stock exchange?

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Hitanshu Agrawal (Investment Banker) (28 Points)
Replied 31 August 2017

Since the purchase was done in 2011, when the stock was not listed, the purchase was not done on exchange, and STT was also not paid.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177818 Points)
Replied 31 August 2017

So, the capital gain tax liability will arise...... as per recent amendment in finance bill, 2017.

Hitanshu Agrawal (Investment Banker) (28 Points)
Replied 31 August 2017

Could you kindly help me with the relevant section/ clause number. Also, hope, I will be able to offset this gain against long term capital losses on shares (wherein STT was paid on both purchase and sale), and minimize my tax outgo. Many thanks for your help and guidance.