How would LTCG affect taxation on shares acquired through IPO, Bonus, Rights issues? I am bit confused as we haven’t paid STT on these. My understanding is that the grandfathering still holds true but my question is do we pay higher tax rates as we haven’t paid STT?
No in all these 3 cases there is no higher tax to pay, even though there isn’t any STT you have paid. These are all listed stock on the exchanges, so LTCG will be like normal listed stocks. You get the grandfathering benefit, and LTCG will be like any other stock.