Taxation of investment in unlisted shares and Pre-IPO companies is not similar to that of listed equity shares. Short-term gains for any sale of such investments held for a period of less than 2 years is taxable as per the applicable slab rates of the investor. On the other hand, long-term gains from the sale of such investments is when the asset is held for a period of more than 2 years and is taxed at a rate of 20% after the benefit of indexation.