Re: Unquoted share

Normally, it is not taxable as the shares are not quoted in the open market and hence it is of no tradable in nature. Moreover, the transfer of shares is governed by the Articles of Association of the company and has a lot of restriction e.g. approval by the board of directors. If this is a private limited company, the existing shareholders had the privileges to buy back the shares at the existing sharing ratio, pre-emptive clause. Tax is only levied on the transaction of trading in nature. And, you are not carrying a business of buying and selling of shares.