Hi,
I got a contract note from Zerodha on 26-Mar that 1 share of TCS is sold.
Today, I got a SMS and email that 10 shares (shares that I have placed bid and total shares that I have) of TCS are debited from my demat account.
I am confused if buyback of 1 share or 10 shares is done. Can someone pls clarify on this ?
This has been answered a couple of messages above.
The problem here is that number of shares debited from demat account and the contract note is different.
That’s why the confusion
@ShubhS9 any inputs from you will be helpful
As @ShubhS9 mentioned above,
all the shares that you have tendered in the buyback will be first debited from your CDSL demat account.
and eventually unaccepted shares will be credited back to your CDSL demat account.
(agreed, it sounds weird. But, apparently that’s how it is done)
Thank you. This is confusing. Why can’t they just debit the number of shares that they accept as the tendered shares are already on freeze.
As there is a debit and credit to demat account, should this be considered as sale and buy and consider long term capital gains accordingly?
I don’t think so. It was debited but not sold. Similar to how the pledge mechanism worked earlier when your shares would be debited and put as collateral with the clearing corporation.
Also, there is no tax liability on the shareholder for the shares tendered in buyback.
Thank you for this information. This is new to me.
The acceptance ratio in the retail category is 26% can you pls explain what does this means? How we can calculate it?
Check your contract note for in depth knowledge.Acceptance ratio = Total no. shares accepted by TCS / No. of shares tender
I can’t see the remaining TCS shares and the amount for sold TCS shares in my bank account yet. When can I see them?
TCS buyback is being added to my longterm & shortterm profits - Kite - Zerodha's fast and elegant flagship trading platform
But TCS pays the tax for it and they they are being added there?
Acceptance Ratio is,
No. of shares accepted for buyback
'----------------------------------------------------------
No. of shares tendered for buyback
Now wait. It’s not. If you tendered just the entitlement, then this ratio becomes 100%. So, the common meaning would be the above ratio,if all the shares in the account on the record date are tendered.
My fathers 2 shares were accepted . Got contact note from zerodha where
STT and exchange transaction charges were deducted from the total value
Any idea why ?
Isnt buyback tax free ?
It’s free from income tax because that is paid by the company.
The indirect taxes will still be applicable.
same issue is with me. I did not receive amount in my bank account.
The TCS buyback settlement has been completed, and the payment for accepted shares has been credited to your primary bank account. Unaccepted shares are credited back to your demat account. If you have not received the buyback credits to your bank account, please contact the RTA of the company. You can check the contact details here.
The TCS buyback settlement has been completed, and the payment for accepted shares has been credited to your primary bank account. Unaccepted shares are credited back to your demat account. If you have not received the buyback credits to your bank account, please contact the RTA of the company. You can check the contact details here.
Hello,
I have got back the 34 shares and 10 were bought back by TCS and now it’s showing in my STCG. Can someone how do I tell this to my CA as its showing in zerodha as profit.
You’re right, I too just realized this.
Just tell him it was sold in a buyback offer. He won’t ask further questions.
If its a case of audit you can provide contract note as a documentary proof.