Secondary demat account in dhan

[D_Saha]

@PravinJ ZERODHA HAS STARTED SECONDARY DEMAT ACCOUNT SERVICE…

When can we expect same at “DHAN” ?? Thanks ..

[D_Saha]

Where is the clause to understand that “FIFO is not exactly in demat, it is PAN wise” ??

[Rao]

@thisisbanerjee

Also, FIFO is not exactly in demat, it is PAN wise… If you have big profits and do this trick, you are more than likely to get a huge tax bill to foot.

FIFO is tracked at demat level, not PAN. That’s literally the whole point of the secondary demat. It’s even mentioned clearly in the IT circular, point (b) https://incometaxindia.gov.in/communications/circular/910110000000000355.htm

Don’t be so dismissive and angry without knowing the details.

[Rao]

@thisisbanerjee

I’m aware of the 4(b) clause, but then if you have a CA please do ask him the on-ground reality.

Then another thing, if you engineer your P&L by booking losses and buying them back in the next FY, after 3-4 days even, the dept. will send you notices that higher amount is due. TL Harvesting.

Notices can happen if the dept wants to scrutinize, esp with aggressive harvesting. But the base rule still stands - FIFO is at the demat level. Clear tax site is also confirming the the same.

Meanwhile, I’ll transfer equity portfolio and save some taxes.