• LTCG from unlisted shares

Hi ,
If the money received by selling unlisted shares is used to buy my first residential property. What is the kind of tax I need to payp
Asked 3 years ago in Capital Gains Tax

Hi, Thanks for writing. And congratulations on your first residential property. You will have to pay Long term or Short Term capital gain (considering the period of holding of shares). Please confirm sale price and purchase price along with buying and selling date to confirm the capital gain amount

Yash Shah
CA, Mumbai
29 Answers

Not rated



If it was a long term capital gain, you can claim exemption under section 54 for reinvestment in residential house property.

If the entire capital gains have been reinvested in residential house property, capital gain tax shall be NIL. 

Reporting in ITR would be required.

Lakshita Bhandari
CA, Mumbai
5687 Answers
912 Consultations

5.0 on 5.0

LTCG on sale of  unlisted shares would be taxable at 20% plus cess with indexation benefits if they are held for more than 24 months. If less than 24 months gains are taxable as per the slab rate. If it is Long term you can claim exemption under 54F.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

5.0 on 5.0



If the gain from the sale of unlisted shares is Long Term (i.e. the holding period of the unlisted shares was more than 24 months) then you can avail the exemption u/s. 54F for investment in residential property.

If the holding period was less than 24 months then the gains would be considered Short Term and taxable as per the slab rates.

I hope this answer satisfies your requirements.



CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Dear Sir,


Hope you are doing well !!


The LTCG arising from transfer of unlisted shares, whether in demat form or physical form, after holding them for a period of more than 24 months, shall be chargeable to tax at the rate of 20 per cent with indexation.


If it was a long term capital gain, you can claim exemption under section 54F for reinvestment in residential house property.


Please note that in order to claim exemption, you need to invest the capital gain amount if a house property sold. However, in case of sale of a any other assets, entire sales consideration needs to be invested.



Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

5.0 on 5.0

That depends on the type of capital gain.

What is the amount of capital gain. Sale consideration. Period for which shares held. Is the property a house property or just a residential plot.

Please answer the above question to help you better.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

5.0 on 5.0



If you hold an investment for more than a 24 months  selling, your profit is considered a long-term gain and is taxed at a lower rate. You can minimize or avoid capital gains taxes by investing for the long term, using tax-advantaged retirement plans, and offsetting capital gains with capital losses


Yes you can get exemption under section 54F by investing in house property.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

if fulll sale proceed  invested in house no tax

Nitin Jain
CA, Jaipur
214 Answers

4.7 on 5.0

First of all, is the money recd on the sale of Unlisted shares is long term or Short term needs to be considered. If long term (ie held for more than 24 months) then the long term capital gain tax can be exempted on the purchase of a residential property.

If the value of the property is more than the money received on selling the unlisted shares, then the whole of the Capital Gain tax is exempted. If the value of the property purchased is less than the money received then proportionate Capital Gains is exempt from tax.

It should also be remembered that one more house cannot be purchased within 2 years or constructed within 3 years from the date of transfer of the original asset. if done the capital gains so exempted will be charged to tax in the year of purchase or construction of the new second house

Sushma Munoyat
CA, Bangalore
27 Answers
2 Consultations

5.0 on 5.0

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