Tax implicationof Off market transfer from Jointly held Demat to Second Holder Singly held Demat

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Respected Experts

 

Myself and my brother hold a demat account in our joint names with my brother as first holder in the demat account.

 

I would like to know the income tax implication of off-market transfer of shares worth ₹. 80 lakhs from this jointly held demat account ( my brother first holder who is NRI now & myself is second holder ) to my singly held demat account ?

 

I would also like to know the Income tax implication of off market transfer to another demat account in which my daughter is first holder, myself is second holder and my wife is third holder?

Will the transfer attract income tax, LTCG TAX or ant tax?

Should we inform income tax authorities about the above mentioned off market transfer ?

Kindly enlighten, respected learned experts...

Replies (2)
Tax liability in off market share transfer depends upon the period of holding ,if it is trade with consideration or share and holding period is mor than 12 months before sale the long term capitals gain as per the income tax act, other wise short term capital gain as per income tax act depending upon the income bracket

regardless of how the transaction is done, it is not taxable - either being your shares being moved from a joint account to personal account. Or even it is argued as it was your brother's, it can be covered as a gift. So not payable regardless of what you do.

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