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As we know, income tax return (ITR) for the Financial Year 2020-2021 (i.e., Assessment Year 2021-2022) is to be filed by 31st December 2021. Prior to the filing of income tax returns, importantly, the taxpayer is required to educate themselves about the newly introduced ‘Annual Information Statement’.

‘Annual Information Statement’ covers all the financial information about the taxpayer and the same is now made available for the Financial Year 2020-2021. Notably, since not completely operational, in case of any variation, information covered under Form 26AS will prevail over the ‘Annual Information Statement’.

The present article guides the reader about one of the information categories covered under ‘Annual Information Statement’ that is ‘Off market debit transactions’.

Various sources of information under the category ‘Off market debit transactions’ in ‘Annual Information Statement’-

The ‘Registrar and transfer agents’ and ‘Depository’ submits the details of ‘Off market debit transactions’. Notably, ‘Depository’ reports transactions relating to securities sold through off market transactions. Whereas, the ‘Registrar and transfer agents’ reports transactions relating to mutual funds sold through off market transactions.

Accordingly, the transaction value is determined in the following manner-

Particulars Transaction value
When the consideration is available Consideration will be reflected as transaction value.
In any other case Transaction value will be computed on the basis of the end price of the day of the security/ mutual fund.

Information source under ‘Annual Information statement’ for the said information category is tabulated hereunder-

Particulars Information Source Description
Value of Off market debit transactions of Listed Equity Share (Depository)  

 

 

 

 

In the Statement of Financial Transaction (SFT) reporting of depository transactions, the depository reports details regarding ‘Off market debit transactions’. The transaction value will be determined in the manner stated above.

Value of Off market debit transactions of Listed Preference Share (Depository)
Value of Off market debit transactions of Listed Debenture (Depository)
Value of Off market debit transactions of Zero Coupon Bond (Depository)
Value of Off market debit transactions of Listed Capital Indexed Bond (Depository)
Value of Off market debit transactions of Unit of Equity Oriented Mutual Fund (Depository)
Value of Off market debit transactions of Unit of UTI (Depository)
Value of Off market debit transactions of Unit of Business Trust (Depository)
Value of Off market debit transactions of Other Unit (Depository)
Value of Off market debit transactions of Other Listed Securities (Depository)
Value of Off market debit transactions of Unit of Equity Oriented Mutual Fund (RTA) In the Statement of Financial Transaction (SFT) reporting of mutual fund transactions, the RTA reports details relating to ‘Off market debit transactions’. The transaction value will be determined in the manner stated above.
Value of Off market debit transactions of Unit of UTI (RTA)
Value of Off market debit transactions of Other Unit (RTA)

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2 Comments

  1. Mahendra Dhruv says:

    With ref to your off market transactions kindly advise me on the following issue, 1. Can I transfer my holding of shares from joint Demat account to my single holding Demat account through Off Market transactions? The first holder’s name is the same in both these accounts. There is no sale or payment involved. It is a kind of merger of two demat accounts wherein the first holder is the same person and there is no financial transaction involved. 2. 2. If yes, what will be its implications in respect of, a. Tax liability. b. STT payable, if any, c. Cost of Off Market transaction I am regular reader off Taxguru and more particularly your articles.

    Read more at: https://taxguru.in/income-tax/annual-information-statement-market-debit-transactions.html
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  2. Mahendra Dhruv says:

    With ref to your off market transactions kindly advise me on the following issue,
    1. Can I transfer my holding of shares from joint Demat account to my single holding Demat account through Off Market transactions? The first holder’s name is the same in both these accounts. There is no sale or payment involved. It is a kind of merger of two demat accounts wherein the first holder is the same person and there is no financial transaction involved.
    2. 2. If yes, what will be its implications in respect of,
    a. Tax liability.
    b. STT payable, if any,
    c. Cost of Off Market transaction
    I am regular reader off Taxguru and more particularly your articles.

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