Stocks transferred as a gift will give benefits from any gains in the stock’s price to the recipient. Giving stocks and other securities also have tax benefits for the donor in case prices appreciate, one can save tax outgo on the earnings or gains. Though the recipient will have to pay tax if they sell these shares.
Transferring shares from one Demat account to another can be done in two ways – online and offline.
Investors hold dematerialised securities in their Demat accounts through two primary depositories — National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
How to transfer shares offline?
Step 1: Fill Delivery Instruction Slip or DIS and give it to your broker.
Step 2: The broker will then send your request to the depository.
Step 3: The depository will move shares to the new demat account.
Step 4: The recipient’s accounts will show the details after the transfer process is completed.
Online Transfer
Step 1: Shares can be transferred via NSDL’s ‘Speed-e’/CSDL’s ‘Easiest’ facilities. One must register first and enter demat details.
Step 2: Fill DIS form and hit submit. Take the printout of the form and submit it to your broker.
Step 3: The broker will further submit your form to the depository to verify your details.
Step 4: After verification, your account will be activated and you will get login credentials through email. Now you can log in and transfer shares through your demat account.
Platforms like Zerodha also offer the facility of gifting shares, ETFs, and gold bonds. One needs to have/create a Zerodha account for this. Here’s how to do it:
Step 1: Log in to kite.zerodha.com.
Step 2: Click on Holdings.
Step 3: Hover over the security to be gifted and click on Options.
Step 4: Click on Send as a gift.
Step 4: Enter the gift receiver’s name, mobile number, email address (optional), and gift message (optional).
Step 5: Click on Continue.
Step 6: Select the securities that are to be gifted. Only the securities that are approved for gifting (DOC) are displayed.
Step 7: Enter the quantity.
Step 8: Click on Confirm & send.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
