In continuation to the previous article, we will cover CDSL Share Transfer to NSDL online via the Easiest facility. Along with that, we will try to cover cut-off time and limits with tax applicability scenarios. Before we deep dive into the transfer process just going to share the refresher of the CDSL EASIEST facility and then will proceed with the main topic.
CDSL share transfer facility is known as the EASIEST facility. Easiest is a facility by CDSL which allows customers to view their holdings, transactions, and transfer stocks online. This will enable them to transfer stocks without submitting physical DIS at branches.
Before getting into the details of the Easiest facility discussion, let us first see the Depository participants in India.
We presently have two depositories – the National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Depending on the depository participant (DP) that you choose to go with when opening an online Demat account. Actually, trading through a Demat account is just like making transactions via a bank account. The only difference is that you transfer shares via the Demat account instead of currency.
The biggest thing about Demat is that you can open more than one account and keep your shares or assets in different Demat accounts. But if you want to move all your shares into one account, then you have that option as well.
The transfer may either be intra-depository or inter-depository.
- In an intra-depository transfer, the shares move from one account to another held within the same depository (CDSL to CDSL).
- Inter-depository transfers happen when shares are moved from one depository to another( CDSL to NSDL).
As you might already know, you can manually transfer the shares held in your Demat account to another one. Now you can easily initiate the online transfer of shares via CDSL EASIEST. You no longer have to do it manually by filling and submitting DIS to your depository participant. Let’s take a look.
CDSL EASIEST Registration
As a CDSL user first you need to register as an EASIEST facility. This facility will help you to check your shares in the Demat form. Here’s a step-by-step guide to help you Register for the EASIEST facility.
Read – CDSL EASIEST Registration – Step by Step Guide
Note:
- Cut-off for authorizing Easiest new registrations will be 4:00 pm daily.
- Cut-off for transfer of stocks to Pool for a future settlement date 7:00 pm daily.
- Post registration, the transfer of securities process is enabled by CDSL only after 1 hour.
Changes & Time Limit
Transfer charges of 0.03% of turnover or ₹25 per ISIN, whichever is higher, plus 18% GST is applicable. However, charges are applicable as per Depository Participant (DP).
Nominally it shouldn’t take more than 3-4 hours to transfer shares from one Demat account to another.
- Intra-depository transfer: If the transfer is from one CDSL account to another then the transfer could be much faster – around 40 minutes or less.
- Inter-depository transfers: If the transfer is done from a CDSL account to an NSDL account, it would take the stipulated 4-5 hours.
Note:
- Direct transfer from one Demat account to another Demat account is called off-market transfer.
- Off-market transfer requests submitted till 6 PM on trading days will be processed on the same day. If the request is placed after 6 PM, enter the execution date for the next trading day. The requests placed for the next day will be processed after the market closes.
- Shares holdings that are in free units can be transferred using this flow. Shares under lock-in cannot be transferred using this flow.
- If your off-market transfer is not a gift/self-transfer and involves consideration, you will need to pay stamp duty to CDSL before making the transfer.
Stamp Duty:
You can make the stamp duty payment at the below-mentioned account through net banking (Add bank details as a beneficiary in your account.)
| Name | Central Depository Services (India) Limited |
| Current Account Number/Code | CDSD (16 Digit BO ID) |
| Bank Name | ICICI Bank |
| Branch | Nariman Point, Mumbai |
| IFSC & RTGS / NEFT Code | ICIC0000104 |
You can use Stamp duty calculator link
https://ww1.cdslindia.com/StampDuty/Cal_StampDuty.aspx
You can view Stamp duty payment using the following link
https://bills.cdsl.co.in/#forward
Time needed: 5 minutes.
Once you have registered for the easiest, you can follow the following steps to transfer shares:
- Setup
Log in to CDSL Easiest and select ‘Setup’ on the Transaction section.
- Bulk Setup
On this page, you need to select ‘Bulk Setup’
- Transaction
You need to select ‘Transaction’ and enter the execution date and enter the Beneficiary owner ID(BOID), you need to transfer the shares to. Click here to check how to add a Trusted Beneficiary Account.
- ISIN
You need to select the ISIN. When you click on Account ISINs, you can see a list of all the ISINs in your holdings. Select the ISIN and enter the quantity and select the reason for trade from a list given.
- Submit
You can see the ISIN details here. Now, you need to click on ‘Submit’ to set up.
- Submission
On submission, you will get this message. Next, you need to verify your request.
- Verify
Click on verify
Note: You needn’t fill in the Exchange ID, Counter Party Exchange ID, Market Type, Counter Party Market Type, Settlement ID, and Counter Settlement ID for off-market transactions. - Commit
You should click on ‘Commit’ button in green.
- PIN
Enter your CDSL easiest PIN. This is not your 6-digit numeric CDSL TPIN. It is an 8-digit alphanumeric PIN that you would have received on your registered email id when you registered on CDSL easiest.
- Submitted
With this, your share transfer request is submitted.
This is now sent to your DP for confirmation. On confirmation, the request is approved and the transfer will be done.
Here are the two scenarios for income tax:
- In case of transfer of shares to the same person, there will be no added tax liability.
- If a shareholder transfers shares to another person, for example, his spouse or children, he has to provide a clear and legitimate reason for doing so. It must be supported by a gift deed to avoid tax liability. Here the capital gain taxes will be applicable.
- Do not sell shares that are being transferred before the approval of DIS execution.
- The share transfer will also be rejected if the balance in the trading account is negative.
Hope you like this detailed article on the Easiest facility offered by CDSL. I have tried to cover aspects of the usage of this facility but still, if you have any doubts or require further input please feel free to contact us so that we can come up with another article relevant to your queries.