Can I sell this tomorrow to book LTCG profit?

Date Qty. Price Age (days) P&L
2021-06-09 200 x 363 x

The 200 shares of a company were bought on 9th June 2021 and tomorrow is 8th June 2022.

363 days have passed.

Can I sell the shares tomorrow to book the profit on LTCG?

Since it will take 3 days to debit the amount from the account…?

Firstly, Z does EPI (Early pay-in) so there is no 3 days. Shares will be deducted on same day of sale.

More importantly, Do your LTCG calculation from contract-note Dates OR demat-to-demat dates and dont get tangled in the backend complexities. There has been such cases before and court ruled in favour of contract notes dates also.

So ensure you are selling on10-jun, the 366th day as LTCG says “more” than 1 year.

If you intend to re-purchase, again wait for 1 day and ensure the Demat is actually debited with old shares, otherwise STBT ( BTST ) may not actually debit and that is another tangle that one can by way of proof sort.

Basically, your accounting practice has to be consistent. Then you cant use BTST/STBT as separate case(STCG) and all transactions will be treated as FIFO,

Selling on a day and buying next day won’t cause any problem, right? For booking LTCG…

Yes, next day should be ok because EP-IREM is recorded in Demat statement on same day of SELL even though the debits are settled as per settlement cycle.

Check your plan, if it matches your profit expectations, there should be no problem in selling.

Yes, I do not think it will cause any such problem. Also, I would suggest you keep a plan B. In case you cannot top up on LTCG, think of any other companies where you would like to invest your amount.

It looks like a good plan! Go forward and sell them to invest in LTCG. Also, since the profits would be quite a handsome amount, I suppose, you should also share the capital and buy some other stocks or a growing company.