⚖️ Tax & Regulatory Pitfalls in Unlisted Share Investing

Summary: Unlisted‐share gains can trigger complex tax and compliance rules. Avoid surprises—from stamp duty on share transfers to capital gains slabs and disclosure requirements.

1. Stamp Duty & Transfer Charges

Every state levies stamp duty (0.1–0.5%) on share-transfer agreements—factor into your total cost.

2. Capital Gains Treatment

Short-term (< 24 months) taxed as per slab; long-term (> 24 months) taxed at 12.5% (no indexation)

3. Disclosure & Reporting

Large unlisted holdings (over ₹50 L) must be declared in Schedule AL of your ITR. Non-disclosure can invite penalties.

4. FEMA & NRI Rules

NRIs need PIS accounts; repatriation allowed from NRO balances—no reconversion requirement for LAS proceeds.

5. Regulatory Watchpoints

SEBI’s grey-market guidance prohibits unauthorised platforms. Stick to SEBI-registered intermediaries like InvestoEdge.