DST Full Form in Banking, What Does DST Stand For?

What Is The Full Form Of DST In Banking?

DST full form in banking is Deferred Sales Trust. It is a nifty trick up the sleeve for those looking to dodge hefty capital gains taxes when they sell assets like real estate or sky-high valued investments. The big idea behind DST is to delay that tax bill that would usually bite right after selling these goodies, giving you more wiggle room and a greater hold on your hard-earned cash from the sale.

What Else Should You Know About DST?

Imagine you’re sitting on a gold mine, something like a real estate property or another asset that has shot up in value since you bagged it, and now you’re thinking about selling. This is where DST swings into action. To get this show on the road, you’ll need to partner up with a Qualified Intermediary (QI), an unbiased third wheel whose job it is to make sure the money from the sale enjoys a tax-deferred holiday. Instead of going the direct route of selling the asset to a buyer, you pass it over to a tailor-made untouchable trust, fondly known as the Deferred Sales Trust. The beauty of this setup is that you get to decide when and how you’ll get paid.

Other Full Forms Of DST In Banking:

  • Digital Signature Trust
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