Can demat account be joined and trading account be single

[sam2trade]

I have a demat account with SBI. I am planning to make it joint account adding my wife. I also have sbicaps trading account. So, while trading using this trading account, can the shares be held in the joint demat account ? Or, is it like there should be different trading accounts for each account holder in joint demat account ?

 

[Smart_trade]

I have a demat account with SBI. I am planning to make it joint account adding my wife. I also have sbicaps trading account. So, while trading using this trading account, can the shares be held in the joint demat account ? Or, is it like there should be different trading accounts for each account holder in joint demat account ?

The trading account is always on single name.The demat account can be in joint names and the name of the trading account holder should be first in demat account. So you can use the the demat account in joint names for giving/receiving deliveries for trading done in your trading account provided the demat account is either in your single name of a joint account with your wife with you as the first holder.

There is no provision of adding your wife's name in demat account to make it joint ( it is not like a bank account where add/delete of names is possible. You will have to open a new demat account in joint names with your name as first name if you desire to hold the shares in joint demat account.

Best Wishes,

Smart_trade

 

[sam2trade]

Thank you Smart_trade for the clear explanation. I enquired at one of the SBI branch before posting at this forum, and was given the wrong info by the customer care person that the demat account can be converted to joined account.
One more question, so regarding the income tax for any gain in stock trades, can I include that as income of my wife and not for me, if the trading is done on my trading account and shares held as joined holding at joined demat account ?

 

[Smart_trade]

Thank you Smart_trade for the clear explanation. I enquired at one of the SBI branch before posting at this forum, and was given the wrong info by the customer care person that the demat account can be converted to joined account.
One more question, so regarding the income tax for any gain in stock trades, can I include that as income of my wife and not for me, if the trading is done on my trading account and shares held as joined holding at joined demat account ?

If trading is done on your account and there is profit,it will be taxed in your hands. If you want that to be your wife's profit,trade on trading account in her name, with all margin and money for buying shares etc coming from her bank account. And you should be able to prove to your ITO, if the need arises,that your wife actually traded and it is not you trading on her account as your benami account. Not that easy my friend...do it properly.

Smart_trade

 

[Smart_trade]

Thank you Smart_trade for the clear explanation. I enquired at one of the SBI branch before posting at this forum, and was given the wrong info by the customer care person that the demat account can be converted to joined account.
One more question, so regarding the income tax for any gain in stock trades, can I include that as income of my wife and not for me, if the trading is done on my trading account and shares held as joined holding at joined demat account ?

No sir,there is no provision of adding/deleting names in any demat account. Even in a unfortunate event of death of one holder out of joint account,a new account has to be opened with the survivor as only account holder and then DP transfers all the shares from old account to new account which afterwords can be transferred to another joint account opened with survivor and another member of family.

These are NSDL/CDSL/SEBI rules. Dont think SBI customer care can change it.

Best Wishes,

Smart_trade

 

[sam2trade]

Thanks a lot Smart_trade. I was crushing my brains for these info. Got it very clearly from you. Once again thanks a lot my friend.

 

[krs_spidey]

If trading is done on your account and there is profit,it will be taxed in your hands. If you want that to be your wife's profit,trade on trading account in her name, with all margin and money for buying shares etc coming from her bank account. And you should be able to prove to your ITO, if the need arises,that your wife actually traded and it is not you trading on her account as your benami account. Not that easy my friend...do it properly.

Smart_trade

nice info smart_trade sirji,me too have a question related to tax from trading profit,i have a demat account with me as primary holder while my father as secondary holder, i want to know that if money used for trading comes from a bank account whose primary holder is my father while im secondary holder, will the profit arising be taxed on me or my father?