Share transfer from One person to Another

Share transfer from One person to Another

Transfer of shares from one Demat account (of person x) to another Demat account (of person y) will be different from one Demat account (of person x) to another Demat account (of the same person x).  The process of transfer of shares from one person (x) to another person (y) is as below:

1. Transfer from one Demat account (of person x) to another Demat account (of person y): when you open a Demat account, you will have been issued a Delivery Instruction Slip (DIS) booklet, consisting of instruction slips (much like your cheque book) in duplicate.

2. You would need to fill this with details of your Demat account, shares to be transferred (ISIN, name, quantity in figures and words) AND the Demat account details of the recipient (person y) and submit both the copies to your Demat account intermediary (called the DP - Depository Participant. you are called BO - Beneficiary Owner). You will be given a second copy for your records.

3. The transfer will happen as soon your DP verifies the details. This is called Off-Market transfer. The charges vary with the DPs. You would need to check with your DP for the specific charges for Off-Market Transfer. In addition to this, Off-Market transfers also attract the capital gains applicable to the property transfers, and tax implication also has to be noted.

 

Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

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