Comment on POA - Power of Attorney for your Demat account

DPR commented on 11 Dec 2016, 12:51 AM

Transferring from mine to spouses account is also a off-market transfer/trade right?

Many many years back when a broker was buying & selling from a pool account, spouse had bought shares which probably was lying with brokers DP/ account and later spouse transferred to parents demat, in anticipation to go abroad. Now that parent would gift it to spouse, and to have healthy net-worth to build up towards company formation, understood it would help to have in individual account(?).

Having received as Gift(with a written Gift deed in place), understand if spouse sells from Individual demat account through the exchanges, there would be no Capital Gains Tax. If however sold as off-market trade , there would be tax incidence in the form of Capital gains (right?). Hence was contemplating for spouse to have a demat account without POA and sell directly on the exchanges.

Please could you confirm if it would be a offmarket transfer (from mine to spouse demat transfer) and would attract capital gains tax( ? ).

Thank you.

PS: Also could open just the Equity Trading account (if nothing works) and a non POA Demat account.

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