As per the Income Tax Act, Unlisted shares can be termed as long-term capital assets if held for more than 2 years else it is short-term capital assets. For an Indian investor, Long term capital gain (LTCG) on Unlisted shares is taxable at 20% of LTCG and is given indexation benefit whereas Short term capital gain (STCG) on Unlisted shares is taxable at the slab rate applicable as per individual Tax bracket.