Capital gains on shares held in demat form

Pratul (FINANCE MANAGER) (105 Points)

05 November 2012  

Dear Freinds,

as per the relevant provisions of Income TAx, it is clear that FIFO method is used to determine the period of holding in case of shares held in Dematerialised form. Also when shares are purchased and sold after taking delivery of the same, the profit/ loss arising therefrom should be treated as Capital Gains/ Loss. Speculation Profit/ Loss will arise only if one makes an intra-day transaction, i.e. buying & selling of securities without actually taking delivery of the same. In the light of the above i have a few questions, if u can help me on the same..

I have 2 Demat Accounts Account registered with 2 different stock brokers (Say A & B) . in the Demat Account with A, i have 100 Equity shares of Co. X. (listed Co. subjected to STT).

My Question is: If i sell 100 Equity shares of X through Broker A, & buy 100 shares of X from Broker B on the same day, then am i subjected to tax on a  specuative transaction or am i subjected to Capital Gains TAx on the amount of diffrence between the sale price & purchase price.?

Please guide and give ur views..