Have you already opened a demat account? It’s time to learn how this eases the way you transfer shares from one demat account to another. In fact, trading through a demat account is just like making transactions through a bank account. The only difference is that you transfer shares through the demat account instead of money.
Read more: How to buy mutual funds online without demat account
We must first differentiate between two types of transfers based on two national depositories in India: NSDL and CDSL.
For the 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.
Read more: Demat account opening charges
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:
Shares could be 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. Note that the capital gain tax will be counted from the initial date of purchase of the stock. The transfer date will not affect it. Suppose 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. This can be traced via the audit trail. In case you transfer the shares that you have initially received via a demat transfer, you will be liable for capital gain tax. What are you still waiting for? Go ahead and open a demat account today to enjoy the benefits of online trading.
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Yes. You can transfer your Demat holdings from one broker to another either manually or online.
The broker may apply some charges for a manual transfer. The amount may vary from one broker to another. However, if you are closing your Demat account, the broker cannot charge any fees.
One can operate two Demat accounts or multiple Demat accounts parallelly without having to close any existing Demat accounts.
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