Joint Demat Account - Splitting shares

Hello, My friend and I share a Demat account together. We have agreed to divide the shares in the joint account equally between us. For instance, if we have 100 shares of Company A in the joint account, we will transfer 50 shares to my individual Demat account and the remaining 50 shares to my friend’s Demat account. I would like to inquire if this transfer from the joint account to our individual accounts would be considered a sale for Capital gain tax purpose under the Income tax law.
Thanks in advance!

Hello Team, could you please help me with the necessary information for resolving my query.

Thank you again.


When you are transferring shares between Demat accounts of the same individual, there is no tax levied. This is because there is no transfer of ownership.

However, it is still advisable to connect with your respective broker once, so as to confirm how the said transaction will reflect in your tax P&L statement.

Hope this helps!

Hello Surbhi,

Thank you very much for your response. So to conclude, if the transfer is from the Joint account to individual Joint account holder’s Demat account in a equally proportion, then there’s no capital gain.

I’m having the Demat account with Zerodha itself. I’ll reach out to the Zerodha Team with your response.