How to enjoy Long Term Capital Gain benefit of tax exemption as well as parallely do swing trading on the same stock?

General
1

I want to keep some stocks XYZ company for long term say 1 year or more.

As well as since it is a fundamentally good company, I would like to do swing trading on the same stock, like buying and keeping for few days and sell it.

But when I sell shares from my demat, the shares which I bought initially for long term gets sold out, and the remaining stocks which are left out in my demat account is having new recent timestamp of purchase.

This cycle will revolve and I will not get to hold the stock for more than 1 year.

How to approach this situation? Any suggestions.

I would like keep stocks for long term and well do swing trading on same stock.

2

In such a scenario, the best way I can think of is to open 2 trading & demat accounts. You can have one account specifically for the sake of investing and another account for regular trading.

This way its easier for you to account transaction in your books and also in case the Income Tax department seeks clarification in futures its simpler to clarify.

Having the same demat account for both investing and trading will result in confusion on determining whether a particular gain is Long term/Short term.

3 Likes
3

Thanks Venu,
In that case, should I approach some other broker, since I cannot have two demat accounts with IL&FS?
As well as two trading account for same person would not be possible with zerodha or any broker I guess.
I already have one trading cum demat acocunt with zerodha.

4

You can have 2 demat accounts with the same DP but not 2 trading accounts with the same broker.

5

Assuming that I open another demat account with IL&FS via zerodha, is it possible to transfer shares via DP slips from my current trading demat account to the newly opened investing demat account.
If I do this, can I enjoy the LTCG benefit?

6

Yes, you can do an off-market transfer from your own demat account - one to another.

7

Yeah thanks. I will talk to zerodha care.
But you havent answered my question.
If I do the offline transfer of shares, can I enjoy the LTCG benefit or not?

8

Yes you will. But it has to be between your own accounts.