Period of holding for Shares in Demat Account

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Swapnil (Querist)
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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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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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Swapnil

Swapnil (Querist)
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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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

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