Narration in Demat Statements

This query is : Resolved

SHAHNH (Querist)
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07 October 2022 Dear Experts,
My father gifted shares by transferring through off-market mode and stating the reason as Gift against the code. On receiving transaction statement find that they - DP (ICICI) mentioned only the account Nos. Vice-versa in narration without mentioning as Gift.
Does this transaction invite scrutiny from the I T Department considering it as an off-market sell and levy tax at higher rates.
Brought to the notice of DP but said they don’t mention. Previously they used to mention in statements and find that for all other off market transactions they ask to mention the reason code and type and same gets reflected in statements.

Thanks in advance 🙏🏻

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 October 2022 No problem you can reply if any notice received, as it's gift exempt from tax.
Hold documents for transfer.

SHAHNH

SHAHNH (Querist)
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07 October 2022 Thank you Sir! … but which documents to hold as we did the transaction/ transferred the shares online through their e-instruction portal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 October 2022 Have the transfer document.
Get it from Your stock broker.

SHAHNH

SHAHNH (Querist)
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07 October 2022 Didn’t quite get your point Sir. We have transferred Off-market without knowledge of our Stock broker online. Our’s is a plain Demat Account held with ICICI Bank DP.
We have kept ready Gift letters , also of acceptance. But point is if they mention in narration a simple word Gift as they do for all other types it will ease the process.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 October 2022 No problem, keep the gift letters and holding statement during the period of gift.
That's enough for reply.
No need to worry.

SHAHNH

SHAHNH (Querist)
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08 October 2022 Thanks. Do the Gift letters be drafted on a Stamp paper or on plain paper will do.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 October 2022 No need of stamp paper. Plain paper will do.

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