Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. New Act, new section and new form references should be verified against official utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Unlisted share sales need careful holding-period classification, valuation support, cost basis, transfer documents and ITR reporting.
- Unlisted shares generally have a different holding-period threshold than listed equity.
- Share transfer documents and valuation records matter.
- Resident/non-resident and FEMA issues may apply.
- Buyback, secondary sale and company purchase need different tax analysis.
Who this is for
- Startup founder selling shares.
- Angel investor exiting private company.
- Employee selling ESOP shares.
- NRI selling Indian private company shares.
Documents and data to verify
- Share certificate or demat record.
- Subscription/exercise cost documents.
- Share purchase agreement and valuation report.
- Bank receipt and TDS records, if any.
Common mistakes to avoid
- Using listed equity rates blindly.
- No valuation or transfer proof.
- Ignoring FEMA/non-resident withholding.
- Confusing buyback with sale.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.