What Are Unlisted Shares?
Equity shares that are not traded on secondary market i.e. stock exchange are been identified as Unlisted Equity Shares or Unlisted Stocks. Buying & Selling of Unlisted Equity Shares is done between two interested parties exchanging the shares from one demat to other through off market trade.
Why Invest In Unlisted Shares?
India has just started to unlock its growth story. There are many Indian companies that are unlisted but have enormous potential. The improvement in tech facilities, ease of doing business, and financial resources have revolutionized the way New India functions and in the process created a lot of companies that have great potential. A lot of such companies are unlisted and our research team researches and studies all these companies and chooses only the best ones to invest in.
Let us take an example of Reliance Retail, we know it as the retail behemoth it is today but, how many of us knew that Reliance Retail has existed since 2005 and commenced its business in 2010. Today Reliance Retail has revenue of 26+ billion dollars annually and it is the largest retailer in India. During these past 12+ years, the share price of the unlisted stock has risen exponentially generating handsome returns to all its early investors.
Reliance Retail is just one of the companies on the list of companies that we at Ashutosh Financial Services recommend to our NRI investors.
Why Ashutosh Financial Services?
We at Ashutosh Financial Services do our own research carefully regarding the company, its financials, and the probability of the company launching its IPO, before suggesting you to buy unlisted shares. NRIs are often confused about which unlisted shares to buy in India and it is here that we use our expertise to guide you in buying unlisted shares as well as advising you on Unlisted Shares Taxation matters.
We would in our first meeting explain you all about the unlisted shares. We explain you all the risks and benefits involved while investing in unlisted shares. We also discuss the tax implications of investing in Unlisted Shares.
We, at Ashutosh Financial Services, take immense pride in being one of the very few companies in this field to have our own Research & Analysis Department. Once you have been informed about the unlisted shares, our research team based on the time of investment determines the best-unlisted shares that you should invest in to achieve your goals.
Once you have approved the suggested unlisted shares, we will begin the investment process. You will have to pay the agreed amount for the unlisted shares via a cheque or net banking & once the payment is received it will take around 3 days for the shares to reflect in your demat account. All unlisted shares will be credited to your demat account only.
Once the investment is done, you will be provided with a dedicated Relationship Manager. All your queries will be solved will be solved by the relationship manager. Apart from this we also take a periodical review of your investments. If any change is needed, you will be contacted along with the suggestions.
Unlisted Shares Tax Implications:
The tax implications of unlisted shares are different from listed shares. The applicability of capital tax would depend on whether the unlisted shares were held for short term or long term. If unlisted shares are held for less than 24 months then those shares would attract short-term capital gain tax. Short-term capital gains are taxed as per the investor’s income slab.
If the unlisted shares are held for more than 24 months then those shares would attract long-term capital gain tax. Long-term capital tax is levied at 20% with the benefit of indexation. It is very important to know and comply with the taxation of unlisted shares in India.
Our aim is to become your one-stop solution for your financial needs. Through our expert and qualified team, we try to give you the best advice regarding your investments. We also keep ourselves updated with all the activities happening in the world of finance. We aim to provide you with quality & unbiased services to secure your goals and future needs. We at Ashutosh Financial Services, are committed to continuously providing financial services to our investors to the best of our ability.
Our Key USPs are as under :
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Credit of taxes paid in India will be available in the country of tax residence as per DTAA.
Effect of foreign currency fluctuation will be available in calculation of capital gains tax (Sec.48).
|Type of Income||Rate of tax in India||Rate of tax in country of tax residency||Short term capital gains on sale of Unlisted Stocks (When holding period is less than 24 months).||Slab rates of income tax||As per the rates of tax in respective country|
|Long term capital gains on sale of Unlisted Stocks (When holding period is more than 24 months).||10% (Without indexation benefit)||As per the rates of tax in respective country|
|Dividend from Unlisted Stocks.||20% (Sec.115A)||As per the rates of tax in respective country|