Tax on IPO gains
Selling allotted IPO shares at a profit is a capital gain, taxed like gains on other listed shares. The holding period decides the rate.
Selling within a year
Shares sold within 12 months of allotment, including on listing day, give short-term capital gains. On listed shares where securities transaction tax is paid, these are taxed at 20% (the rate since July 2024), plus surcharge and cess.
The gain is the sale price minus the issue price you paid, less brokerage and charges on the sale.
Holding longer
Shares held for more than 12 months give long-term capital gains, taxed at 12.5% on total long-term gains above ₹1.25 lakh in a financial year.
Losses and records
A loss on an IPO sold below the issue price can be set off against capital gains, and unused losses can be carried forward if you file your return on time.
Your broker's capital gains statement lists each sale. IPO Khata's profit and loss page groups each family member's IPO gains by financial year, which helps when filing. Tax rules change; check the current rules or ask a tax adviser for your case.
Related guides
- What happens on IPO listing day
- What is IPO GMP? Full form, meaning and how to calculate it
- Can family members apply for the same IPO separately?
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- Selling or holding IPO shares on listing day: what to weigh
- How to sell IPO shares: listing day step by step
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Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.