LTCG& STCG on Shares transferred off market-NRI PINS to Resident demat account

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This discussion clarifies the tax treatment of shares transferred from an NRI PINS account to a resident demat account after becoming a resident. If the total holding period, including the time held as an NRI, exceeds 12 months, the sale will be subject to Long-Term Capital Gains (LTCG) tax. The off-market transfer date itself is not considered for the holding period calculation.

Abdul Salam Sagir

Abdul Salam Sagir (Querist)
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28 June 2022 I was holding shares in my NRI PINS account and after becoming resident, opened a resident demat account and transferred PINS shares to the resident demat. This is recorded as an off market transfer in the records, by the depository. STT was paid at the time of purchase of shares.
Would like to know the tax implications on sale of shares in the resident demat: if the total holding period (NRI PINS+ resident demat) is more than 12 months, I need to pay only LTCG? Or, holding will be considered from the off market transfer date, where STT was not paid? Please clarify.