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IPO profits and taxes in 2025: STCG, withholding, and tracking your returns

1 min read
189 words
Opinions on Indian stocks and mutual funds STCG,

IPO profits in 2025 spark sharp tax questions. Short-term capital gains (STCG) from listing-day moves and how to track post-IPO returns after reinvestment are hot topics in Indian stock chatter.

STCG and IPO gains - Selling IPO shares after listing typically triggers STCG. In discussions, the advice ranges from paying advance tax to consulting a CA. If your total income including capital gains stays below the basic exemption, some claim you may owe nothing; others warn about penalties if you cross the threshold, with a deadline like 15th March to pay 100% before. [1]

Tracking post-IPO returns with XIRR - Another thread dives into tracking returns after redemption and reinvestment using XIRR. A user who invested in an ELSS fund years earlier and now redeems shows a ~20% XIRR, planning to reinvest and still claim the tax benefit of 1.25 lakh. [2]

Guidance and pitfalls - Across the discussions, it’s clear you should consider professional guidance; the thread emphasizes seeking advice to avoid missteps on advance tax, exemptions, and regime rules. [1]

Closing thought: stay organized, monitor the numbers, and consult a tax pro to nail 2025 IPO gains.

References

[1]
Reddit

Sold IPO shares for profit but never paid any taxes before — what should I do about STCG?

Discusses STCG on IPO profits, advance tax, penalties, and seeking tax guidance; mentions CA, regime thresholds, and metro rule applicability.

View source
[2]
Reddit

How to track XIRR after long term redemption and reinvestment

User seeks method to track XIRR after redeeming ELSS, reinvesting, and claiming 1.25 lakh tax benefit without distortions over time

View source

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