My intention is to have an account on which I would like to pool few shares, which I will consider for long term say 5 years or so.
The amount of buying and storing in demat would be high, selling activity would be less (more than one year considered, to get LTCG benefit).
So which broker offers the minimal annual maintanence charges (combined trading account and demat account charges)?
Is it beneficial to open only demat account (other than IL&FS, on which I already have one account)?
Will the charges for transferring shares from my IL&FS account to the new account will be more than the annual charges I would incur for having a separate trading account?
If I transfer my shares from IL&FS account to the other account using DP slips, and later trade in my zerodha account (buying and selling of same shares), will the LTCG benefit be considered to the shares I transferred to the new demat account or not?
Sorry, still I have few more questions. I would clarify once I get answers to these!
Astro, Please remain here , who will guide us if you think about moving away … anyhow cheers …
I have not mentioned anything about moving away from zerodha.
This question is basically to identify how to capture Long Term Capital Gain.
If you buy a stock and hold for 1 year time or more, you need not pay tax to government when you sell those stocks.
For Example I buy HAVELLS stock 200 qty and keep in my demat account today. I want to sell these after one year and whatever profits I earn will be exempted from tax.
But what really happens, is that I do intraday buying and selling on HAVELLS regularly and when sometimes price goes down, I keep the stocks overnight and sell later, may be after 2 days.
In that case, what happens is that my stocks I kept for long term gets sold and the recent stocks replace the old ones with timestamp beginning from that moment, Again I need to wait one year to get LTCG benefit. This cycle will revolve and I will never get HAVELLS stock older than 1 year.
So if I open a demat account with another broker, I can keep those for long term investment, like a safe/locker and use the zerodha account for regular continuous trading.
But Venu provided a solution. By opening 2 demat accounts with zerodha itself, I can transfer the stocks offline from one account to another using DP slips and can enjoy LTCG benefit on the other account.
Another solution would be to open an account in my spouse’s name and use it for regular trading and keep my account for Long Term Investment purpose. (but Not the other way around, Use my account for trading and keep hers for investment, you know why