Long term gain or short term??

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2012 Hi, If I'm having 100 shares of ACC for over 3 yrs. in my DP (D-mat form) and I'm not a trader. Si I know I'll be getting LTCG when I sell these shares.......BUT if I transfer these shares to any other DP(of any person) as a loan for few weeks/months (less than 1 yr.)...and later take back before end of 1 year....then what will this be counted.......will I be eligible for LTCG or I loose all the long term benefits???

VIVEK SHARMA

VIVEK SHARMA (Expert)

02 April 2012 You must have documents in place to show that this transaction is not a sale transaction.Securities given on loan is not sale and hence the transfer of ownership does not happen. All the corporate benefits accrued during this period should be returned by the person who has borrowed security from you.

Else the transaction will be treated as off market transfer.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

07 April 2012 Yes I agree with the expert and it will not be treated as sales and no LTCG will be calculated but what about the dividend received by your friend or relative to whom you are transferring the shares?

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