If you are investing or trading, you would have come across a situation where you wondered how to transfer shares from one Demat account to another online.
This article is all about how to transfer shares from one Demat account to another online. We will discuss both online and offline methods to transfer shares. Only the process of online share transfer will be discussed in complete detail.
Every step for transfer right from which website to visit, how to log in and create an account, how to open an easy account, how to convert easily to the easiest account, and finally how to transfer shares from one Demat account to another online
Table of Contents
We have tried our best to cover the complete process of how to transfer shares from one Demat account to another online
An account with a depository where your shares are stored
A mediator between you and the depository who open your account with a depository
CDSL & NSDL:-
Depository that stores your shares in digital format or dematerialized form.
Types of share transfer from one Demat account to another online
Inter depository transfer
If you transfer shares from one depository to another it is called an inter depository transfer
Eg. transfer of shares from NSDL to CDSL or vice versa
Intra depository transfer
Transfer of shares from one broker Demat account to another in the same depository is called intra depository transfer
Eg. your Demat account is with Zerodha and you want to transfer your share from Zerodha to Upstox then they both have a Demat account in CDSL, such transfer is term as Intra depository transfer
The method discussed below is applicable for both inter and intra depository transfer of share
How to Transfer Shares from One Demat Account to Another Online?
Offline process of share transfer
know how to transfer shares from one Demat account to another offline
Step 1 get a delivery instruction slip or form from your broker and fill it up
step 2 get client master report CMR report of Demat account to which shares are needed to transfer from their broker
step 3 submit DIS (delivery instruction slip) and CMR (client master report) to your broker. Your broker will verify details and shares will be transferred to another Demat account.
Online process process of share transfer
Step 1 Open an easy account with CDSL
Step 2 Upgrade it easiest
Step 3 Enter beneficiary details
Step 4 Submit the application
You see, how easy it is to transfer shares from one Demat account to another online
In the online process, you will only require your 16 digit DP account number, beneficiary account number and you are PAN number for the password
The stepwise complete process of online share transfer
If you are going to transfer shares then every process is mention step-by-step so that you can easily understand how to transfer shares from one Demat account to another online
Opening CDSL EASY account
1 visit “cdslindia.com“
2 select “login” option
3 choose a “new system my easy”
4 To get login details first register yourself by selecting “to register for easy”
5 Enter your 16 digits Demat account “BO ID”
6 “Enter password”
Your password is a combination of your pan card number and date of birth in DD MM format ex. ABCD12345G1305
7 “verify OTP” from registered phone number
8 Fill account details by entering “user name”
it can be anything as you wish
9 “Set password” and remember it for further use
10 “Add security question” so that it can help you in case of password recovery
11 “Give answer to security question” and “confirm” that
12 “Grouping” you can add your other Demat also if you wish to transfer shares from that account to here.
Congratulations, your easy account registration is completed successfully now.
13 Get back to “login page”
14 Enter “username” and “password” that was said earlier
Now you will see all your Demat details and shareholding in your Demat to transfer shares from your Demat account to another online. Now you need to convert an easy account to the easiest account
Updating EASY to EASIEST Account
15 Select “miscellaneous” option in easy account
16 Choose “upgrade your BO ID to easiest”
17 If the beneficiary account is registered with CDSL then choose “trusted account” and if registered with NSDL then select “account of choice”
18 Add “BO ID” – 16 digits account Demat account number in which you want to transfer shares. You can also add multiple beneficiary Demat account numbers to transfer shares from one Demat account to another online.
19 You will receive “OTP”- verify that and your easy account will be upgraded to the easiest account.
Easy to easiest upgrades take place immediately or can take one to two days. You will receive a “pin for easiest account” on the registered email you need to change after logging into the easiest account.
Updating PIN of the easiest account
20 Get back to the “CDSL login page”
21 Enter “username and password” which was set earlier to login
22 Your account status will be displayed as “registered for easiest”
23 Now we need to change the pin that was received on mail ID for this select “miscellaneous” option
24 Choose “change pin”.
25 Enter “old pin” received on mail and enter “new pin” and “confirm It”
Now the most exciting part of how to transfer share from one Demat account to another online
How to Transfer Shares from One Demat Account to Another Online
26 Select “transaction setup”
27 Choose “bulk setup”
28 keep “buy-sell flag: sell” as it is
29 Enter “execution date”- the date on which you want to transfer shares from one Demat account to another online
30 Select “counter BO ID” – to which shares are being transferred. It will be displayed as default as you had entered it earlier.
keep everything as it is or blank
31 Click on the “+” icon on ISIN details
32 Select “account ISIN” – all holdings will be visible along with the ISIN number
33 “Choose shares” you want to transfer from your Demat account to another
34 “Enter quantity” of shares
35 Give “Reason to transfer”- ‘gift’ to avoid capital gain tax
36 Select ” OK”
37 Now “Verify” and select “OK”
Your request transaction will be visible on the screen
38 Select the “transaction” and click on “commit”
39 Enter the “Pin” that we changed from the pin received in the email.
You will receive a message as authentication is successful and your shares will get transferred within 2 days to your beneficiary Demat account.
Hope you get how easy it was to transfer shares from one Demat account to another online through CDSL easiest account.
Taxes on online share transfer from one Demat account to another
Either you transfer shares online or offline you have to pay taxes if the transaction limit is crossed
1 Tax exemption limit for share transfer is 50000 this is the total value of the shares
2 You are eligible for tax exemption only if the reason for the transfer of share from one Demat account to another is under gift
3 If you transfer shares that you have previously received from someone else, you have to pay capital gain tax on it before transfer.
There can be certain more clauses under the Income-tax act. Please notice it before from a tax consultant or any financial advisor.
How to gift shares to someone (Zerodha)
Recently Zerodha added a new feature for their customer i.e Gift shares to someone.
Hope you understand How to Transfer Shares from One Demat Account to Another Online. If anyone wants to transfer shares from one Demat account to another then share this article with him.
Happy Investing and Trading!