Who Will Be Taxed in Case Demat Account is in Three Persons Name?
January 3, 2010 by taxworry · Leave a Comment
We have a demat account, My mother (X) is first holder, My wife (Y) second holder & My self (Z) third holder. All the investments source of funds is from my mothers account (Money is mothers) all gains (short time or long term) is chargeable to whom????
Rajesh , Banglore
Since the money is all of your mothers, the investments are all of your mother. Having joint account is simply a case of joint stake , the shares belonging to your mother. Therefore , the short term or any trade gains is taxable only in your mothers hand. The tax will be charged based on the premise that who ever pas for the share is the owner of the share and in case of sale of such share will bring capital gains or loss in his /her hand only .
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