Transfer of shares from joint holders Demat to individual Demat accounts
This query is : Resolved
07 April 2026
Two employees (non relative)holding shares in a listed company since last 25 years in physical form recently dematerialised the shares. Now they want to transfer these shares in equal proportion to their respective individual Demat accounts.
What are the implications for such off market transactions? Is it considered gift to each other or transfer from joint account to own account is out of the purview of Gift. It is understood that as and when they sale the shares the same will be taxable if there is a capital gain, if any.
What precautions to be taken and what reason is to be mentioned for transfer in dematerialisation instructions slip?
Please guide.
What are the implications for such off market transactions? Is it considered gift to each other or transfer from joint account to own account is out of the purview of Gift. It is understood that as and when they sale the shares the same will be taxable if there is a capital gain, if any.
What precautions to be taken and what reason is to be mentioned for transfer in dematerialisation instructions slip?
Please guide.
07 April 2026
• Joint → individual demat transfer = NOT taxable
• It is not a gift, just restructuring
• Use off-market transfer (DIS) with proper reason
• Future sale only taxable (LTCG)
• Maintain clear documentation to avoid scrutiny
• It is not a gift, just restructuring
• Use off-market transfer (DIS) with proper reason
• Future sale only taxable (LTCG)
• Maintain clear documentation to avoid scrutiny
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