Procedure for Transferring Shares
1. Online Transfer through CDSL Easiest
CDSL Easiest provides a seamless online method for transferring shares. To begin the process:
- Click on the provided link to watch the step-by-step YouTube tutorial on registering for CDSL Easiest.
- Once registered, follow the instructions in the portal to complete the transfer.
2. Offline Transfer through Delivery Instruction Slip (DIS)
For offline transfer, the seller must complete and submit the following documents:
- Delivery Instruction Slip (DIS):
- This slip is provided by the broker where the seller holds the demat account.
- The seller must fill in details such as:
- Demat details of the counterparty (buyer)
- ISIN of the shares being transferred
- Quantity of shares to be transferred
- Off-Market Annexure:
- This form can be downloaded from the broker’s website or collected directly from the broker.
- It includes the bank details of the counterparty (buyer).
- Form A (Addition of Beneficiary Account):
- Mandatory from January 1, 2024.
- It captures the demat details and PAN details of both the buyer and seller.
3. Verification and Transfer Completion
- After submitting the signed copies of the above documents, the client will receive two OTPs.
- Upon successful OTP verification, the transfer is completed, and the seller will receive a debit message for the transferred shares.
Payment of Stamp Duty
- Stamp duty is to be paid by the seller at a rate of ₹15 per ₹1 lakh transaction.
- The payment method depends on whether the seller has a NSDL or CDSL account:
- For NSDL Account Holders:
- Visit the NSDL Website → Click on Pay Stamp Duty
- Enter Seller’s DP Details → Proceed to Payment
- Complete the payment using available options
- For CDSL Account Holders:
- Open UPI/Online Banking
- Use the account number format:
- IFSC Code: ICIC0000104
- Bank Name: ICICI Bank Ltd
- Transfer the calculated stamp duty to this account.
Tax Implications
- For Unlisted Shares:
- Long-Term Capital Gains (LTCG): Taxed at 12.5% for holdings exceeding 24 months (no indexation benefits).
- Short-Term Capital Gains (STCG): Taxed as per the seller’s applicable tax slab for holdings under 24 months.
- For Listed Shares:
- LTCG: Tax-free up to ₹1.25 lakh; above this, taxed at 12.5% for holdings exceeding 12 months.
STCG: Flat 20% tax for holdings less than 12 months.
By following these steps, sellers can successfully transfer shares either online via CDSL Easiest or offline using DIS, while ensuring compliance with stamp duty and tax regulations.