Bought Shares Before March, Credited After April? Here’s the Year That Matters

Image Source: The Economic Times

If you bought shares toward the end of the financial year but they only showed up in your demat account after April, you’re not alone—this is a common situation that can trip up even seasoned investors. So, which financial year does your share purchase actually count for?

Key Highlights:

The key thing to remember is that, for tax purposes, the acquisition date is when the shares are actually credited to your demat account—not when you placed the order or paid for them.

If you bought shares in FY25 but they only got credited in FY26, then FY26 is considered your official year of acquisition.

This rule applies whether you bought shares through an IPO, in the secondary market, or via an off-market transfer.

The date of credit also determines the start of your holding period for capital gains tax. So, if you’re hoping for long-term capital gains tax benefits, your clock starts ticking from the credit date in FY26.

If a company declares a dividend between your purchase date and the date the shares are credited, you won’t be eligible for that dividend if the shares haven’t hit your account yet.

When you file your taxes, always double-check your demat statement and contract note to confirm when the shares were credited.

If you’re dealing with a large investment or have doubts about how this affects your taxes, it’s a good idea to consult a tax professional.

Source: Economic Times