ipos: Unicorn IPOs may bring tax woes for early investors

A grandfathering clause is a provision in tax legal guidelines during which an previous regulation continues to use to some present conditions whereas a brand new rule will apply to all future instances.


Previous to getting listed unicorns need to deliver down the per share worth, in order that small retail traders can take part within the issuance. The one means to take action is to problem bonus shares — a step that is probably not protected underneath the tax legal guidelines and might be handled as recent issuance, say tax consultants.

Mumbai: Among the massive traders in unicorns which might be being listed on the capital markets might face tax problems on the issuance of bonus shares and will find yourself coughing up capital good points tax sans grandfathering profit.

Early traders in unicorns equivalent to Paytm, Mobikwik, Policybazaar and Zomato might face between 10% and 15% tax on the bonus problem of shares.

Traders must cough up hundreds of thousands on their realised good points, say tax

  • SAVE

Register to learn the complete article

You’ve received this Prime Story as a Free Present

Already a Member?

Particular Provide on ET Prime

Get Flat 20% Off


Get Provide

Why ?

  • blank

    Unique Financial Instances Tales, Editorials & Skilled opinion throughout 20+ sectors

  • blank

    Inventory evaluation. Market Analysis. Trade Tendencies on 4000+ Shares

  • blank

    Clear expertise with
    Minimal Adverts

  • blank

    Remark & Interact with ET Prime neighborhood

  • blank

    Unique invitations to Digital Occasions with Trade Leaders

  • blank

    A trusted group of Journalists & Analysts who can finest filter sign from noise

https://economictimes.indiatimes.com/markets/ipos/fpos/unicorn-ipos-may-bring-tax-woes-for-early-investors/articleshow/84961084.cms | ipos: Unicorn IPOs could deliver tax woes for early traders


Inter Reviewed is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@interreviewed.com. The content will be deleted within 24 hours.

Related Articles

Back to top button