📑 Tax-Efficient Structures for Unlisted-Share Investors

Summary: Proper planning can reduce stamp duty, optimise capital-gains tax, and streamline NRI repatriation. Discover the three legal vehicles InvestoEdge recommends to maximise post-tax returns on private-equity stakes.

1. Section 54F – Capital-Gains Exemption via Residential Property

Reinvest long-term gains (>24 months) from unlisted shares into residential property within prescribed timelines to claim exemption.3

2. Private Trust & HUF Structures

Hold unlisted shares under an HUF or private discretionary trust to benefit from slab-rate advantages and intra-family transfers without extra duty.

3. Offshore Holding Companies for NRIs

Use Mauritius or UAE–structured entities to invest in Indian unlisted shares, leveraging DTAA benefits and streamlined repatriation.4

How InvestoEdge Assists

Our legal partners craft bespoke tax-efficient vehicles, ensuring full compliance with the Companies Act, FEMA, and Income-Tax Act.

References

  1. Income-Tax Act Section 54F
  2. India-Mauritius DTAA Text
Open Demat Account