You should file ITR-2 and report income from the sale of unlisted shares of a Domestic Company or Foreign Company as Capital Gains. You should pay income tax on it as per rates below: - Long Term Capital Gain - 20% with indexation - Short Term Capital Gain - slab rates The taxpayer can set off LTCL with LTCG and STCL with both STCG and LTCG. Further, the taxpayer can carry forward the remaining loss for 8 years.