How are your IPO listing gains taxed? | Tax on IPO profits

Income Tax Income from Capital Gains
21

Great explanation on IPO listing gains and taxation! It’s really helpful to understand how short-term and long-term taxes apply to IPO profits.

22

Should not the tax rate on STCG be @20%. Also, whether the basic exemption is Rs. 3 lakhs ( under default new scheme) or 2.5 lakhs?
Further, if the gross taxable income including Capital gains is more than the ’ basic exemption’ then it is obligatory to file tax return even if the tax liability is zero.
Pls clarify. Thanks !

23

Hello @mandsca,

Yes, the STCG is 20% (as amended by the Finance Act, 2024) and the basic exemption limit under new regime is ₹3 lakhs.

If your gross total income exceeds the basic exemption limit, you are required to file an ITR even if:

  • Your tax liability after deductions is zero, or
  • TDS has already been deducted by the broker or company.

Hope this helps!!