Budget 2024: Change in Capital Gains Tax for Unlisted Shares

Thu, 10 Apr 2025

5 min read

Recent changes to the capital gains tax regime have brought about a significant positive change for investors in unlisted equity investments. With the new policy, the long-term capital gains tax on the sale of unlisted equity investments has been reduced from 20% (with the indexation benefit) to 12.5% (without the indexation benefit). This update is effective from 23rd July 2024.

Key changes in taxation on unlisted shares
- Listed and unlisted equity investments will now be taxed at a uniform rate of 12.5% on long-term capital gains.
- Listed equity investments have witnessed an increase from 10% to 12.5%, aligning both asset classes under the same tax regime.