Transfer of shares from father to son

1. Purchase Transfer Deeds according to number of scrips. Signatures of both Transferor and Transferee are required on that Transfer Deed.

2. You need to pay Transfer charges while filling out a Transfer Deed, which is currently at Rs.2.5 per Rs.100 of shares. The value of shares (technically called as Consideration), can be calculated on any particular date as decided by you. So, if you decide to select 21/22 January as that date, it would be cheaper as share prices fell on that day. The consideration date cannot more than 15 days old.

Share Transfer Stamps is the manner in which one can pay transfer charges on shares.

3. Send those totally filled with Transfer Deeds to the Registrar of the respective company.

4. It might take at least 1 month or maybe more for shares to be transferred into your name and further 15 days in dematting them in your account.

Alternatively, open a Demat account in your father's name and get the shares dematted and later on transfer them into your own account. It would be easier, quicker and cheaper option to go for in my view. Your father can always close his Demat account at any point of time. Isn't it?

Good Luck!

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Hi Aaruhi. Thanks for your reply. The shares I have mentioned are already in Demat form(in my fathers name) and he wishes to transfer the same to my Demat Ac. He can, instead, sell the shares in his own account and transfer the proceeds to my account. I want to know, which one of the two would be a better option, keeping in mind the tax implications for both. Would I be liable to pay tax on the amount if my father transfers an amount of Rs.12,00,000 to my account? or Is Demat to Demat transfer a better option?

what is the procedure and impact of business stock transfer from father to son