India Sets Tax Treatment of the Sale of Unlisted Shares as Capital Gains

On 2 May 2016, India's Central Board of Direct Taxes issued Instruction F No. 225/12/2016/ITA.II, which states that it has been decided that income arising from the transfer of unlisted shares is to be considered capital gains instead of business income irrespective of the holding period. The instruction is meant to avoid disputes/litigation relating to the treatment of such income. However, tr…
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