Desabandh Real 20 February 2020

Tax implication of transfer of shares from jointly held dema

Respected Learned Experts,

Myself and my brother hold demat account in our joint names with my brother as first holder.

What is the tax implication of transfer of some shares from this demat account to another demat account where my brother is second holder & his wife is first holder. ?

Will the transfer attract Income tax, LTCG, or any tax?

What is the procedure to do the transfer from this jointly held demat account and what form need to to filled ?

On receipt of the shares in my brother's jointly held demat account, should he inform the same in his income tax returns?

Kindly enlighten sir

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 20 February 2020

a Demat account can be used to transfer shares from one account to another. In that process, since the ownership of the shares is not affected in any way, it eliminates the possibility of a transaction and consequently, there are no tax implications one may have to face as a result of the transfer. But, there are certain situations where one might need to transfer their shares from one account to another.