If you’ve recently reaped profits by selling Tata Technologies or IREDA IPO stocks on their listing day, it’s crucial to grasp the tax consequences associated with gains made within a day of acquiring the stock. Notably, both Tata Technologies and Indian Renewable Energy Development Agency (IREDA) have seen substantial listing gains, with Tata Technologies opening at ₹1,192.05 on December 4, from an issue price of ₹500, and IREDA opening at Rs 65.15 from an issue price of ₹32.
The year 2023 has witnessed at least 15 stocks listed with remarkable surges of 80-100 percent on their debut day. While these stocks are subject to standard taxation, the circumstances of purchase influence their taxability.
Considering you sold the shares within a year of allotment, the profits from the sale will be treated as short-term capital gains. Consequently, you’ll be liable to pay a 15 percent tax, along with education and higher education cess. Be prepared for the tax implications when capitalising on listing day gains.
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