Are you someone who has multiple Demat accounts?
Are you tired of keeping track of each of them?
Do you have to manually maintain reports on how many returns you earn?
If your answer to these questions is a YES, then this article will help you find a solution by exploring the process of transferring shares from one Demat account to another. Let’s begin.
Depending on the broker you are associated with, your shares will be held with depositories like NSDL or CDSL. Now, to start with the offline transfer process, you must first fill out the Delivery Instruction Slip called the DIS form.
In this form, fill in a few details like:
- ISIN number of the shares which are to be transferred
- Name of the share
- DP ID of the account in which the shares are being transferred
And a few other details and hand the form to the broker’s office for further processing.
The broker will initiate the transfer request to the depository on your behalf and charge a nominal fee.
This process is a lot simpler. If your shares are held with CDSL, then they have a platform named ‘Easiest’. Well, the name clearly expresses how the process would be!
So, start with registering on Easiest’s website by providing your account details.
Now, there are two ways you can transfer shares.
Situation 1: If you and the receiver both have their shares held with CDSL, in this case, you can add the receiver’s account, which is also known as a ‘trusted account’, to your Easiest platform. Once the account is successfully added, you can transfer shares from one Demat account to another.
Situation 2: If you wish to transfer shares to any other Demat account, log in to the easiest website and fill in the details. Take a printout of the form you have filled out and hand it over to your Depository Participant (DP). The DP will process the form further and verify your details. Once the details are verified, you will receive login credentials on your email ID.
There you go! Using your login credentials, you can transfer shares independently.
- If you transfer shares from a Demat account to another and both the accounts are held under your name, then there is no tax liability. You only have to pay the fees charged by the broker.
- If you are transferring shares as a gift to your close relatives (mentioned in the IT act), then the gift is not taxable.
- If you are transferring shares to a person who is not a close relative, a gift of over Rs 50,000 is taxable in the hands of the receiver.
Transferring shares just got simpler. So, you don’t have to manually maintain a report of multiple Demat accounts from now onwards. Simply transfer shares and lead a peaceful life!