Listing on BSE SME offers significant capital gain tax benefits. Unlisted shares attract short-term capital gains (STCG) tax of up to 30% and long-term capital gains (LTCG) tax of 20%. However, by getting listed on the SME platform, the STCG tax is reduced to 15%, and there is no LTCG tax, provided the investor has paid Securities Transaction Tax. This tax advantage makes listing on BSE SME an attractive option for Small and Medium Size Enterprises (SMEs) seeking to raise equity capital, as it not only enhances visibility and credibility but also provides liquidity for shareholders and incentivizes venture capital funds for investment.
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