Procedure to transfer shares from one person's demat account to another person's demat account?

Procedure to transfer shares from one person's demat account to another person's demat account?

We will understand in this article😀
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  1. How to transfer Shares from One Demat account to another demat account ?
  2. What is the procedure to transfer shares from one person's demat account to another person's demat account?
  3. What are the charges for that?

Process to transfer shares from one demat account to another

Types of transfers based on two national depositories in India: NSDL and CDSL.
1. Intra-depository transfer: If the transfer is within a depository itself
2. Inter-depository Transfer: Transfer from one depository to another.

 

  • Two way of transfer 
  1. Manually 

  2. Online

  • Manual procedure

You will have to get the delivery instruction slip (DIS) from your broker. The DIS contains some mandatory fields that should be filled up to do the transfer of shares.

1. Beneficiary owner ID (BO ID): It’s the 16-digit ID of the broker. You will have to provide the ID of both current and new brokers in the slip.

2. International securities identification number (ISIN): It’s a unique ID number to identify each of your shares in the demat account. This number needs to be mentioned clearly to state which shares have to be actually transferred.

3. Mode of transfer: If the transfer happens to be intra-depository, you must choose the ‘off market transfer’ option. Otherwise, it’ll be ‘inter-depository transfer’.

 

 

  1. Online procedure:

CDSL has a feature called EASIEST to help you transfer shares from one demat account to another online. You need to register yourself on this website before you can begin. The process is outlined in the following:

1. Click on ‘Register Online’ link

2. Select the option EASIEST

3. Fill in the details

4. Take a printout and give to the depository participant (DP)

5. The DP will further send it to the central depository, which will verify your details. You will get the login credentials in your email within a couple of days.

6. Login and see your broker list. Now, you can transfer your shares.

  • Tax implications when transferring shares from one demat to another:
  1. Shares could transferred to the different demat accounts of the same individual or different persons.
    In case of transfer of shares to the same person, there will be no added tax liability.

  2. The capital gain tax will be counted from the initial date of purchase of the stock. The transfer date will not affect it.

  3. you transfer shares in the account of different persons. You will have to clearly mention the reason for such transfers. There will be no extra tax liability if the transfer is backed via a gift deed and doesn’t exceed the limit. Here the tax liability will be from the date of the original purchase. 

 

Video Details :

https://youtu.be/Ce1GSXuaHiY

 

Video Chapter
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0:00 Introduction for transfer demat account
0:25 Types of transfers share based on two national depositories in India
2:28 Transfers share based on Manual procedure
4:22 Transfers share based on Onlineprocedure
5:45 Tax implications when transferring shares from one demat to another