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Difference between "Gift to Relative" and "Transfer between Specified Family Member" Shares in Demat

Tax queries 730 views 2 replies

What is Difference between "Gift to Relative" and "Transfer between Specified Family Member", as per Income Tax Act?

NSDL and CDSL online platforms when allowing to do OFF-MARKET Transfer, will ask for the "Reason for transfer"

Therefore, one desiring to do off-market transfer of some shares to a son/daughter is asked to give a reason for off market transfer between "Gift to Relative" and "Transfer between Specified Family Member"

Hence the question: Whether "Gift to Relative" or "Transfer between Specified Family Member" ?

 

Regards,

Replies (2)

Main difference is in gift there is no sell amount paid, its free;  while in transfer/sale the price is paid by receiver.

You might be aware of renunciation however it's more or less sale.


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