Need info on tax on transferred securities

I have plans to transfer securities from my Anand Rathi account to my mother’s zerodha trading account. I need to do it coz I’m not in India for more than an year now and don’t want to get into NRI account opening processes.

All the securities held in Anand Rathi are for more than a year. Suppose I transfer and decide to sell few of my stocks within a year, how will the tax be calculated will it be taxed as short term profit.

Can someone help me on this. I am a long term investor and have been holding few of the stocks from last 5-6 years. Thanks

hElLO tRaDeR,

  1. The shares currently in your Anand Rathi account transferred to your mother’s new demat account will be considered as GIFT and you mother is exempted from paying any taxes on receiving this shares from you (no matter what the value of the asset transferred ) Section 56.

  2. Stamp duty is payable by you on the total market value of the shares transferred as on the date of transfer. Section 29 of Stamp Act

  3. After a successful transfer has been done to your mother’s new demat account, she can now sell it anytime (even the next day on receiving it) and still be exempt from paying any taxes on the amount received from sale. LTCG exempt under section 10(38)

Since you, the transferor, had held the shares more than a year, the shares now gifted to your mother will be classified as a Long term Capital Asset and exempted from capital gains tax.

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Thanks for the info. Could you please let me know what is the current stamp duty rate(Karnataka state). Is it same as the stamp duty(0.01)levied on delivery trade?

Hi, For your reading: