Old physical shares how to treat..

POSTED BY rohit sablok ON April 1, 2012 10:29 am COMMENTS (5)

My father has some shares in physical format purchased some 15 years ago. He has broker receipts for most of these but he didnt mention these shares in his assets. I want to get these shares dematerialised and show them in his books. how is that possible

5 replies on this article “Old physical shares how to treat..”

  1. Dear Rohit, first of all please check how many papers are of worth & how many are scrap. the for the papers which do have some worth, please open a demat account in the name of your father or in the name of all holders if some of these shares are joint holder. Please do note that in case of joint holdership, the demat account should be in the name of same holders.

    Thanks

    Ashal

  2. Also the initial purchase date will come into play for taxation. If you are to ever sell those you need to pay no taxes (As on date).

  3. Rohit

    the first step is to dematerialize the shares. . ask your father to open a demat account, they will guide you on the whole process .

    Manish

    1. rohit sablok says:

      hi friends… i know all about dematting and stuff, I also know that LTCG on equity is zero.

      My question is about tax treatment. My point is my dad never showed these shares in his ITR. Now Can he all of a sudden add show all these shares in his ITR as assets. Is that possible ? Is there a clause where one can show assets purchased decade ago.

      1. Dear Rohit, no reason to worry. There is no such column to declare assets in ITR forms. Yes as & when, your father books his tax free LTCG, the same should be reported in ITR-2 form.

        Thanks

        Ashal

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