Tax implication on trasferring shares from 1 demat account to another account.

[gautam_iiith]

Suppose There is 2 Demat Account
1) DP1 -- Linked With PAN-1
1) DP2 -- Linked With PAN-2

Now Please consider 4 cases.
Case1:
Share is bought in DP1 in Rs1000. After sometime it is transferred to DP2. At this time the value of share is 1500.
Then After sometime the share is sold from DP2 in Rs2000.
So which Person will pay the tax and how much. i.e. PAN1 or PAN2


Case2:
Share is bought in DP1 in Rs1000. After sometime it is transferred to DP2. At this time the value of share is 1500.
Then After sometime the share is sold from DP2 in Rs1200.
So which Person will pay the tax and how much.i.e. PAN1 or PAN2


Case3:
Share is bought in DP1 in Rs1000. After sometime it is transferred to DP2. At this time the value of share is 800.
Then After sometime the share is sold from DP2 in Rs400.
So which Person will pay the tax and how much.i.e. PAN1 or PAN2

Case4:
Share is bought in DP1 in Rs1000. After sometime it is transferred to DP2. At this time the value of share is 800.
Then After sometime the share is sold from DP2 in Rs1200.
So which Person will pay the tax and how much.i.e. PAN1 or PAN2

Please guide me in this matter case by case.

Thankx
Gautam

 

[iTrade]

If both the DMAT accounts belong to the same person, then I think the tax will be chared only on sale from second account after transfer. Becasue, when u transfer between your own dmat acounts, you are not making any profit.

However, if you are transferring shares from your dmat account to your friends dmat account, it is as good as selling shares in the market and depends if you are making profit then u have to pay tax. Now if your friend is selling those shares again, it is again a normal market transaction, and he will have to pay tax too unless he sells in loss.