[sukhoi]

Needed help regarding old shares held in physical format.

My mom has some old shares which are held by her (in her maiden name) and my grand father (in some cases mom and grand mother) with my mother being the primary holder on such physical share certificates. Both my grand father and grand mother are no more. We came to know of these shares some time back and are now wanting to get them dematerialised in mom's name. What I have understood of the process so far is that:
1) We write to registrar of the company and get the physical shares changed from joint holding (mothers maiden name and grand-parent) to single holding (in mother's married name). New physical shares would be issued with single holder and new name. Is this what is known as transmission of shares as well?
2) Submit the demterialisation request to get the newly issued shares in demat form

It would not be possible to do so in a single step.

Wanted to know if anyone has done a similar exercise and any specific points which need to be factored in?

Also, for name change in physical shares (from maiden name to married name), is marriage certificate a must? Back in the day when mom got married, marriage certificates were not the norm and we do not have one. My father passed away some time back. Online reading says that with a death certificate supplied we could still get the marriage certificate made, However the marriage took place in Kanpur and we are in Chandigarh at the moment. Chandigarh office for marriage registration said for a certificate, both husband and wife need to be present else it cannot be issued. In her passport we have both grandparents' names mentioned and my father's name as husband. Does that work as an acceptable proof for name change?

Posting here in case someone has done a similar exercise and can share some details/pointers.

Thanks,
S

[fordday]

In this article about Tata seeking 23000 cr loan for Air India operations, there are some concerning points.

Quoting from it (emphasis is mine).

"Almost all existing lenders of Air India want to give Tata loans, particularly in the absence of credit growth, but pricing is a hurdle that they need to overcome," said an executive at one of the lenders.

"The dilemma is because the short-term rates are expected to harden with the Reserve Bank of India (RBI) reducing surplus liquidity in the system to normalise post-pandemic easing, but at the same time demand for loans is sluggish,"


Even with all the govt spending and all the racket creation about booming economy, is this the truth behind the screen that there is hardly any credit offtake? Surely the economy cannot be booming without credit. Will the banks go under?


Link to the article.

[SmartCat]

Originally Posted by fordday

Even with all the govt spending and all the racket creation about booming economy, is this the truth behind the screen that there is hardly any credit offtake? Surely the economy cannot be booming without credit. Will the banks go under?

Slow or low credit growth can also happen if major industries are running significantly below 100% utilization. For steel & oil refining segment, massive capex has already been made in the preceding years.

Banks will not go under if there is low credit growth. They will just slash rates on deposits . Any surplus funds is invested into government securities too.

[Pancham]

Guys, posting this here since this is related to sale of shares. I have a relatively small STCG on sale of shares (~30K). My understanding is that there will be a flat 15% income tax on this amount right?

However, while filing the ITR, in the schedule "Income chargeable to tax at special rates" - the "Taxable Income after adjusting for min chargeable to tax" and "Tax thereon" is showing ZERO.

Can anyone help me understand why there is no tax on STCG?

[Sran]

Originally Posted by sukhoi

Needed help regarding old shares held in physical format.

My mom has some old shares which are held by her (in her maiden name) and my grand father (in some cases mom and grand mother) with my mother being the primary holder on such physical share certificates. Both my grand father and grand mother are no more. We came to know of these shares some time back and are now wanting to get them dematerialised in mom's name. What I have understood of the process so far is that:
1) We write to registrar of the company and get the physical shares changed from joint holding (mothers maiden name and grand-parent) to single holding (in mother's married name). New physical shares would be issued with single holder and new name. Is this what is known as transmission of shares as well?
2) Submit the demterialisation request to get the newly issued shares in demat form

It would not be possible to do so in a single step.

Wanted to know if anyone has done a similar exercise and any specific points which need to be factored in?

Also, for name change in physical shares (from maiden name to married name), is marriage certificate a must? Back in the day when mom got married, marriage certificates were not the norm and we do not have one. My father passed away some time back. Online reading says that with a death certificate supplied we could still get the marriage certificate made, However the marriage took place in Kanpur and we are in Chandigarh at the moment. Chandigarh office for marriage registration said for a certificate, both husband and wife need to be present else it cannot be issued. In her passport we have both grandparents' names mentioned and my father's name as husband. Does that work as an acceptable proof for name change?

Posting here in case someone has done a similar exercise and can share some details/pointers.

Thanks,
S

First of all write to the company or telephone them to let them know the situation and they will guide you thoroughly.

General scenario:

Write an e-mail to the company and they or their registrar handling the shares(e.g kfintech for RIL) will send a Name deletion form. Fill the form and submit it with relevant documents like death certificates. It will take a couple of months and then you will receive new share certificates in paper form with new folio numbers. Prior to it open a Demat account in name of the owner i.e your mother. Always add a nominee in the account. Later when you have received the new share certificates ask for a Dematerialisation Request Form from the DP. Fill it along with handing over the original share certificates and notarised Death certificates of the joint holders and then DP will do the rest. Aadhar and PAN cards are must for all of this. Name will not be a problem as every dept. knows about maiden name and change to surname after marriage.

Be patient it may well take over six months and require multiple follow ups. Make sure to do it in 2022 as paper shares are going to be tougher to dematerialise and will not be possible after 2025.

[whitewing]

Originally Posted by Pancham

understanding is that there will be a flat 15% income tax on this amount right?

My understanding is that the tax rate applies only if your taxable income exceeds the exemption slabs.

[Latheesh]

What is a reason for such a big fall today other than Omicron scare?

[smartindboy]

Originally Posted by Latheesh

What is a reason for such a big fall today other than Omicron scare?

Probably similar reason(s) for rising to the all time high levels.


- profit booking (institutional investors make money at the cost of retail investors)
- to be expected, after such a ridiculous run to higher levels (such corrections are good though)
- results, though are very good, but already priced in
- its just markets, they go up and down, and no one seems to know exactly why

[Vikalp]

For how long this fall could last? Any idea?

[deetee]

Originally Posted by Vikalp

For how long this fall could last? Any idea?

The present fall is more of cautious sell-off rather than with actual imminent reasons. More like a knee jerk reaction - a reaction cascading across markets.
This should stabilise by wednesday and after that we may see a few sessions of up-down swings before it moves up again.

[bharanidharang]

Its a combination of FII selling which has been heavy in the last few weeks and fear of omicron. However I am sure it will pull back soon.

[deetee]

Last week it all started with banks and metals getting hammered. Eventually, caution crept into all other segments too. It's year end for many markets and holidays are coming up. So no one wants to get caught in landslide ( i.e., if it happens ), hence the profit booking. Now this is at brink of u turn though.

[babhishek]

Originally Posted by whitewing

My understanding is that the tax rate applies only if your taxable income exceeds the exemption slabs.

Ideally, STCG is taxed at 15% flat via ITR2. I do not think this is linked to income being above or below taxable limits.
Experts can validate.

[warrioraks]

Originally Posted by Vikalp

For how long this fall could last? Any idea?

Trillion dollar question! Unfortunately no one can answer this.
The market would do what it wants to do and we will learn only in hindsight. There are just too many variables here. In my opinion, the only thing worth knowing is:

'Markets can stay irrational longer than you can stay solvent' - John Keynes

So buckle up, focus on managing your risks and enjoy the ride.

[sukhoi]

Originally Posted by Sran

First of all write to the company or telephone them to let them know the situation and they will guide you thoroughly.

Thanks for your reply Sran and other BHPians who responded via DM. A relative had suggested going via an agent who was charging 10 ~ 15% of the market value of the shares to get this process done, however in that case also we would have to provide all documents at relevant stages of the process and he (agent) would only be responsible for doing the correspondence with the registrars and doing follow-ups. This felt like a costly option to me personally, given the amount of work we would still be doing. However the doubt was that we may not know of the due process and could mess it up. But now I feel confident, based on your replies and some reading I did online and after talking to some other folks too, that while time consuming, it is a process which we can complete on our own. Thank you . Will keep updating this thread as and when we make progress/ hit roadblocks so that it may help someone else who would have to go through the same process.

Originally Posted by whitewing

My understanding is that the tax rate applies only if your taxable income exceeds the exemption slabs.

The understanding that you have mentioned is correct.

Originally Posted by babhishek

Ideally, STCG is taxed at 15% flat via ITR2. I do not think this is linked to income being above or below taxable limits.
Experts can validate.

Till last year I was also of the same opinion that even if I have say income of 1 lakh and STCG of 1 lakh (total 2 lakhs which is below the 2.5 lakh basic exemption limit), I would have to pay flat 15% on the STCG of 1 lakh rupees. However that is not correct. In the above scenario the tax liability would be zero. Refer to this article which details it. Gains under section 111A (which are short term capital gains) can be adjusted against basic exemption limit. Am not sure but I think that LTCG does not get this benefit, it only holds true for STCG.

Regards,
S