Income Tax Assignment: Top 10 things that demat account holders should keep in mind

Income tax submission 2025: Demat account holders, it is closer to the deadline for the submission of income tax this year, so if you still have to submit your ITR, here are the top ten things to remember – of what kind of income, to which form to fill in. Individuals open a Demat account to track and manage their investments in company shares, mutual funds and bonds, other than other securities. Although you are usually opened with a bank, you can also have a Demat account with an online broker. Noteworthy is that all earnings sold by the sale of your securities, such as dividend income, interest income, short-term capital gains (STGC) and long-term capital gains (LTCG) are taxable according to the Income Tax Act, 1961, the funds or holding in a demat account are not directly taxable. Here are the top 10 things that taxpayers with demat accounts should keep in mind when submitting their ITR this year: Profits earn from the sale of bonds, debentures, mutual funds, shares and other securities are taxable under the IT Act. Once a Demat account is opened, the KYC (with Linked Pan and Aadhaar) is immediately warned the IT section, and transactions will be reflected in your form 26As. To declare your earnings from your Demat account, get the statement of account with your bank or broker, and a transaction statement of your deposit participant (DP), ie the NSDL or CDSL. You must also log into your IT Liberation Account and validate your Demat account to add it to your income tax details. STGC is the profits made from the sale of shares, ETFs or mutual funds within a year after purchasing any of the above securities. A Level 15 percent security transaction tax (STT) is imposed on all STCG disorders gain, even if your total revenue is below the release level. Profits made on securities held over a period of more than 12 months are considered LTCG, where any profits of more than £ 1 lakh are taxed at 10 percent of earnings earned. Besides this, you can also earn dividend income, earned by companies that provide you with money for their shares you own. It does not have a separate tax and is usually taxable at your appropriate tax page. As a practice, companies deduct 10 percent on dividends above £ 5,000 a year (with pan provided), and 20 percent without pan. There are also interest income, derived from credit effects or effects held in a demat account. You must declare your Demat account revenue during the submission of ITR and can either use ITR-1 form (if no capital gains), ITR-2 form (if you do not have business income), or use the ITR-3 form (if your business is).