Capital gain on Transfer of Shares from one demat to other for same individual

Income Tax Income from Capital Gains
1

Hi Qucko team,

I had bought the shares in June’2020 in one demat (X)and transferred the same shares to my another demat (Y) in May 2023. I sold the same in Jan 2024 in Y. In this case , capital gain is considered as STCG or LTCG. Would be great if any link available for such scenario in Income tax rules. Thank you

2

Hey @Harihar

Shares held for over 12 months are categorized as long-term capital assets, and any profit gained from selling these shares is referred to as long-term gains. In your situation, since you initially bought the shares in June 2020 and sold them in January 2024, the profits generated will be classified as Long-Term Capital Gains (LTCG).

Hope this helps!

1 Like
3

Thank you for the response.The report generated in the 2nd broker is showing short term gain as the report logic is considering the transferred date . So I hope this can be reported as long term while filing taxes