Lets say a scenario 1 lakh invested 3 years ago now became 2 lakhs and I have transferred the same to another DP I had via CDSL easiest. Now after the transfer if I sell out all shares i.e 2 lakhs . Now how does taxation works here if I sell on new DP i transferred to. Please note transfer of shares happened b/w same PAN user i.e me
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AFAIK buying price remains the same. Selling price is what you sold at. Acquisition date is also the same.
Where you are selling it from hardly matters since it is on exchange only, and you are paying securities transaction tax in both cases.
Hi @ssrs
When transferring from one’s own demat account between two broker, it is necessary to obtain the buy average and date of acquisition from the previous broker. This is because only the units are transferred during the process, and the associated details such as the buy average and date of acquisition are not automatically included. you will have ensure you get the correct details updated.
Taxation will be on the profit amount (sell price - original buy price ). It will be fall under LTGC since the holding period is more than a year.
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how to ensure that buy avg and date of acq included in CDSL. I dont see any such options while entering below is the pic of the same
Those details should be a part of the trade book provided by the broker.
Hey @Kalpesh,
Tax liability will arise only when you sell the stocks and incur capital gains. In case of transfer from one DP to another, capital gains shall not arise.
not sure what you meant, how to inform the current dp to send those details other dp where my shares are expected to be transferred
yes, Quicko but the question is different here and Kalpesh answered that but you can also answer my question
So when transferred a single share for testing purpose to one dp to another. I was charged dp charges for sell transaction is it valid? because CDSL says only 0.03% of value must be charged for dp to dp transfer
CDSL does’t care about buy price/date. It’s like a locker for your stock units.
You have to manually update in new broker’s app/website. “Set buy price” or something like that.
Example on how to do on zerodha - How to update the buy average on Console?
It is 0.03% of the transfer value or ₹25 per ISIN, whichever is higher. + GST. as per zerodha’s site.
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@Quicko what are the tax implications for transfer of shares from personal account to my company account(im director). Both in zerodha. shares transferred during may 2023. The personal account shows unrealized p/l of 14 lakhs.
any idea on tax management?
@Sriharan You need to check with the CS/CA of your company with reference to this as there will be tax implications in the hands of Company as well.
Regards,
Aditya
Tax will NOT be applicable when the shares are being transferred from one DP to another of the same PAN.
However, if and when, the shares are being sold in the exchange or to a DP of another PAN, tax will be appliable. For calculation of this tax, the method you suggested will be applicable.