Shares received
at No Cost or at Less
Than FMV


Applicable on any person receiving from any person (individual or non-individual; resident or non-resident)

Trigger point

Any person receiving shares or securities



Taxable as income from other sources in the hands of the investor

What is taxable?

Determination of FMV (As per 11UA of the IT Rules)


Issuance at discount to FMV is restricted under the Indian foreign exchange regulations for FDIs by non-resident investors. However, this section could get triggered in case of resident investors

Capital Gains
on Transfer of Shares


Any assessee (individual or non-individual; resident or non-resident) transferring shares other than the ones quoted on any RSE

Trigger point

Investor receives consideration which is less than FMV


FMV of the shares shall be deemed to be the sales consideration

Determination of FMV [As per Rule 11UAA read with Rule 11UA]

Such FMV will be determined as on the date of transfer of shares.

Capital Gains
Exemption to Boost Investment
in Startups


To boost the investment in eligible start-ups, a new exemption offered to taxpayers (individual or HUF only) from long-term capital gains arising from the transfer of residential property.


Lock-in period

Eligible startup and eligible business

Incorporated in India during the relevant FY in which the capital gain arises to the due date of filing return of income.

New Assets

Means new plant and machinery but does not include: