Hello,
I have a demat account with me as first holder and parents as joint holders.
I would like to transfer shares to a new account with me as first holder and my wife as second holder.
What reason code should I use when I fill the offmarket transfer slip.
What is the tax implication of doing the same.
Thank you
Since you’re the first holder in both cases, it isn’t considered a “transfer” for capital gain purposes, rather a change in holding pattern. As such, there’s no capital gain.
There’s a reason code, “Transfer between specified family members” which you can consider using.
Thank you very much Sir for the clarification.
Please can you advise when these shares are sold in future if the purchase price is the original price or the price as on date when this movement happens from first account to the new account.
Since there are no capital gains at the time of transfer, you should compute capital gains upon selling from the original buy date/price to the price/date of selling.