In November 2020, Zerodha announced the debut of a stock gifting platform on Console, allowing users to give stocks, ETFs (Exchange Traded Funds), and gold bonds to friends, family, and loved ones. Console’s gift stocks function allows you to give stocks, ETFs, and gold bonds to friends and family. Read the article below to know in detail how to gift shares to someone online using Zerodha
Gift Shares To Someone Online Using Zerodha
The procedure to gift shares to someone online using Zerodha is as follows:
- Fill in the name, phone number, and email address of the person you’d want to give stocks to.
- Choose which stocks, ETFs, and Gold bonds you want to give away from your holdings. Please keep in mind that you can only give stocks from your demat account; T1 holdings cannot be given. Furthermore, only stocks on the approved list of securities can be given as gifts.
- Wait for the gift to be accepted by the recipient. If the receiver does not already have a Zerodha account, they can create one and accept the gift online. The gift request is valid for seven days, during which time the receiver must accept the gift or it will be revoked.
- You will receive an email and SMS message from Zerodha once the recipient has accepted the gift, requesting you to verify the recipient’s details and allow the stocks to be transferred from your demat to the recipient using the CDSL TPIN.
- Zerodha will set up an off-market gift transaction at CDSL that you must verify using an OTP given to you by CDSL once you have accepted the debit of stocks using the CDSL TPIN.
- You’ll receive an email and SMS from CDSL with this link to validate the transaction with an OTP shortly after Zerodha sets up the off-market gift transaction, which happens at 5 p.m. every trading day. To generate the OTP, you will need to input your PAN or 16-digit DP ID. By 8 p.m. on the same day, the OTP verification must be completed.
- The stocks are transferred from your demat account to the recipient’s demat account if the transaction is successfully verified using the CDSL OTP. From the next day after the transfer, the holdings will appear in the recipient’s account.
- There are no additional fees associated with gifting. These transfers are subject to an off-market transfer fee of Rs. 25/- or 0.03 percent per scrip, whichever is higher. The charge will be deducted from the gift sender’s trading account balance. Click here to learn more about how giving fees are calculated.
- The gift trade will be automatically entered at the stock’s closing price on the day the stocks are transferred to calculate the P&L and buy averages. The sender of the gift’s holding will be closed at the stock’s previous closing price, and the average price for the receiver of the shares will be the same previous closing price on the day the transfer is completed.
- The tax implications of a gift transaction are determined by the gift’s value. If the present is worth more than Rs 50,000, the receiver may be subject to taxes.
- An auction penalty may be imposed if you gift securities from your account while also selling them on the market.
- The depository has made the TPIN facility available to Individual, Joint, NRI, and Minor account holders (CDSL). On Console, only the owners of these accounts have the ability to gift securities.
- Clients who have a negative balance in their trading account are unable to transfer shares using the gift option.