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

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Desabandh Real

50 Points Posted on 05 September 2022

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,

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Quick Summary

This discussion clarifies the distinction between transferring Demat shares as a 'Gift to Relative' and a 'Transfer between Specified Family Member' under the Income Tax Act. While a gift implies no payment, a transfer between family members may involve a sale price. Understanding these differences is crucial when using NSDL and CDSL platforms for off-market transfers.