hi
Some (3) years back i had purchased some shares of a then unlisted company in a off market transaction. I have the contract notes from the broker dealing in unlisted shares and all the payments were made by accont payee cheque. The investments were made by me and also by members of my family. The shares listed last year on both BSE and NSE platform. I am still holding the shares and have no intention of selling them in the near future. But as per the new budget proposal if i continue to hold them after 31.03.2017 these will be subject to LTCG. These are genuine investments which are now bearing substantial returns. As a measure of tax planning can i do the following :
member A : holds 1000 shares
member B : holds 1000 shares
On day 1 A sells his holding to B on the stock exchange platform.
On day 2 B sells his holding to A on the stock exchange platform.
By this way both A and B have booked their LTCG and have got back their holding on the basis of FIFO.
I want to know if there has to be an actual movement of securities from the demat account to claim LTCG or the contract notes of buy and sell on different days are considered as sufficient.
Thanks
CAclubindia
