Why treating CDSL transfer to own account as sales in Zerodha?
Before secondary account option in Zerodha I used to transfer my long term shares to Groww . When I saw the price discrepancy the support team told it has to be updated with sales date and price . If it is treated as sales then it will impact the taxing , I transferred to my own account only .
Is the primary to secondary account also treated as sales ?
Hi Sandeep, in the AIS, the transfer of securities are recorded as off-market transactions and not “sales”.
I am guessing you are referring to the entries passed in the tax P&L statements when there is an off-market transfer. We pass closing entries for the transfer of shares only based on the details provided by our clients. The reason being, we would not have the visibility on the buy average details that he/she would have updated in the transferee broker’s system.
However, transfers to a secondary Demat account appear in the tax P&L report as record entries reflecting the transfer itself. However, since these are not sale transactions, both the P&L and turnover will be zero meaning no capital gains arise from them.