Zerodha's new demat account helps you avoid capital gains tax
Zerodha just rolled out a secondary demat account for individual investors, making it easier to keep your long-term investments separate from short-term trades.
This helps you avoid unnecessary capital gains tax headaches caused by the FIFO (first-in-first-out) rule, which can trip up anyone who mixes old and new shares in one account.
How to set up your secondary account
You'll find your secondary account only on Zerodha's Console platform—not on the Kite trading app—to help you resist those impulsive "sell" taps.
Moving shares between accounts is all online and takes about 24 hours.
Each account comes with an annual fee of ₹300 (plus GST), and every transfer costs ₹13 (plus GST).
Separating long- and short-term investments
The FIFO rule means the oldest shares get sold first, which can lead to higher short-term capital gains taxes if you're not careful.
With separate accounts, you can manage long- and short-term holdings more cleanly—making tax time less stressful and reporting way simpler.
All your Zerodha accounts are expected to stay accessible under one login for easy tracking.