Taxation & HNI7 min read1 July 2026

IPO Taxation in India: Complete Guide to STCG, LTCG & Listing Gains Tax

Master the tax rules on IPO listing gains and long-term equity investments under the latest Union Budget tax regime. Learn tax-loss harvesting and reporting under ITR-2/ITR-3.

Team IPO Listing

Lead Research Desk

IPO Taxation in India: Complete Guide to STCG, LTCG & Listing Gains Tax

Taxation & HNI Masterclass

1. Taxation Framework for IPO Allottees

When an investor is allotted shares in an IPO and subsequently sells them on listing day or in the secondary market, the taxation depends strictly on the holding period.

2. Tax Rates Overview

Short-Term Capital Gains (STCG - Section 111A): 20% on shares sold within 365 days of listing.

Long-Term Capital Gains (LTCG - Section 112A): 12.5% on profits exceeding ₹1,25,000 for shares held over 1 year.

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IPO Taxation in India: Complete Guide to STCG, LTCG & Listing Gains Tax

1. Taxation Framework for IPO Allottees

2. Tax Rates Overview

Apply This Research With Live IPO Tools

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