Period of holding for Shares in Demat Account
This query is : Resolved
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20 January 2022
Hi,
As per my understanding When Shares in Demat Account are sold, FIFO ( First in First Out ) method is considered for calculating period of holding & accordingly STCG Tax or LTCG Tax is applicable.
But if an individual has more than one demat account & has shares of same company in each demat account, how period of holding will be calculated ?
1-Will period of holding of Shares calculated demat account wise or
2-Will period of holding Calculated basis date of purchase, irrespective of demat account in which they are held
Please advise
As per my understanding When Shares in Demat Account are sold, FIFO ( First in First Out ) method is considered for calculating period of holding & accordingly STCG Tax or LTCG Tax is applicable.
But if an individual has more than one demat account & has shares of same company in each demat account, how period of holding will be calculated ?
1-Will period of holding of Shares calculated demat account wise or
2-Will period of holding Calculated basis date of purchase, irrespective of demat account in which they are held
Please advise
20 January 2022
Period of holding will be calculated as per date of purchase, irrespective of demat account in which they are held.
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20 January 2022
Sir ,
to clarify furrther , for example if i have 100 shares of X Ltd in first Demat A/c for more than 12 months ( Long Term) & in second Demat A/c i have 100 shares of X Ltd for 3 months ( Short Term ).
And I sold 100 shares from second demat A/c , will my income fall under Long Term Gains or Short Term Gains
to clarify furrther , for example if i have 100 shares of X Ltd in first Demat A/c for more than 12 months ( Long Term) & in second Demat A/c i have 100 shares of X Ltd for 3 months ( Short Term ).
And I sold 100 shares from second demat A/c , will my income fall under Long Term Gains or Short Term Gains
21 January 2022
Technically, you can claim LT holding.
But there will be mismatch in AIS report, as the broker will report it as short term holding.
So, if you wish to take LT gain, advisable to sell it from first demat account.
But there will be mismatch in AIS report, as the broker will report it as short term holding.
So, if you wish to take LT gain, advisable to sell it from first demat account.
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