Tax implications after transferring shares from one demat account to another

[zoomtrader]

@Jack_R

transfer as a “sell” in the P&L statement

This is currently a bug in the system of secondary demat transfer. It should show the same price for buy and sell, or at most show as zero profit/loss. see this thread

Secondary demat account at Zerodha to manage your investments

Umm why are transfers to secondary demat showing in Tax P&L statement? That is very incorrect. I am seeing all transfers to secondary demat in the P&L statement and the difference as realised P/L. If these are reported to ITR, that botches the reportings in AIS hugely. Are they getting reported for ITR, and being treated as sale?