Are you trying to Transfer Shares from one Demat to Another online? Now is the time to discover How to Transfer Shares from one Demat to Another online. Transferring from one Demat account to another is roughly the same as doing bank transfer from one account to another. The only thing is that instead of transferring funds, you transfer stocks via a demat account.
Table of Contents
Reasons of Transferring Shares from one Demat to Another online
- You may have many demat accounts and wish to merge all of your stock holdings into a single account.
- It’s possible that you’ll want to divide the stocks into multiple accounts. This is usually done for long-term goals such as retirement, kid education, or marriage.
- To save money on your existing brokerage, you may choose to transfer from your present broker to a discount broker.
- To boost your trading volume, you may choose to shift to a full-service broker to gain extra regular reports and advice.
How to Transfer Shares from one Demat to Another online?
Shares can be transferred from one Demat account to another in one of 2 ways: manually or through an online transfer. However, to understand first we need to understand type of transfers:
Transfers
To begin, we must clarify among two types of transfers depending on two Indian national depositories: NSDL and CDSL.
- Intra-depository transfer: Intra-depository transfer refers to a transfer that takes place within a depository.
- Inter-depository Transfer: When transferring funds from one depository to another, this option is available.
All stocks can be manually or digitally transferred.
How to Transfer Shares from one Demat to Another Manually
You will need to collect the delivery instruction slip (DIS) from your stockbroker for the manual procedure. To complete a share transfer, the DIS contains some necessary fields that must be filled out.
- Beneficiary owner ID (BO ID): This is the broker’s 16-digit ID. In the slip, you must include the IDs of both existing and new Stockbrokers.
- ISIN (International Securities Identification Number): This is a one-of-a-kind identifier for each of your stocks in your demat account. This number must be stated clearly in order to specify which shares must be transferred.
- Transfer mode: If the transfer is intra-depository, you must select the ‘off market transfer’ or it’ll be ‘inter-depository transfer.
Note:
You must sign below the form after you have clearly filled out all of the above fields. The signature must be identical to the one stored in the DP’s database. After that, you must send it to your present broker.
It could take a day or two to figure out which shares to move to the new demat account. This transfer may be subject to fees imposed by the broker.
The amount may differ from one stockbroker to the next. The brokerage, on the other hand, cannot impose any charges if you close your demat account.
How to Transfer Shares from one Demat to Another Digitally
EASIEST is a CDSL facility that allows you to transfer shares from one demat to another online. Before you can start, you must first register on our page. The following is a description of the procedure:
- Go to the ‘Register Online’ page and fill out the form.
- Select EASIEST from the drop-down menu.
- Complete the details.
- Print the page and hand it over to the depository participant (DP)
- The DP will then transmit it to the central depository, where your information will be verified. Within a few days, you will receive the login credentials via email.
- Go to your brokerage list by logging in. You can now transfer your stocks.
Tax on transferring share dealing account
Shares could be moved to separate demat accounts held by the same person or by different people. There will be no additional tax payment if shares are transferred to the same person.
The capital gain tax will be calculated from the day the stock was first purchased. It is unaffected by the transfer date.
Assume you transfer stocks between multiple people’s accounts.
You’ll have to explain why you’re making these changes. If the transfer is supported by a gift deed and does not exceed the limit, there will be no additional tax liability.
The tax liability will be calculated from the date of purchase. The independent audit can be used to track this.
Note
You will be subject to capital gain tax if you transfer the stocks you originally obtained via a Demat transfer.
Conclusion
Nowadays the transfer process is simple and easy. It doesn’t take much time and you need not worry regarding the documentation as everything is online.
This is all from our side regarding How to Transfer Shares from one Demat to Another online? Let us know your views about how to transfer shares from one demat account to another in the comment section.
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Charges for transfer of shares from one demat to another?
There is no charge if you transfer from your own account to your another account. If you transfer it to someone else, short term or long term capital gain will be applicable if the stock's value is more than INR 50,000.
Types of Transfers in Depositories?
There are two types of Transfers Intra Depository and Inter Depository.
