NSDL Share Transfer to CDSL Online | SPEED-e Registration | Charges | Income Tax

In continuation to the previous article, we will cover NSDL Share Transfer to CDSL online via the SPEED-e 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 NSDL SPEED-e facility and then will proceed with the main topic.

What is NSDL Share Transfer Facility?

NSDL share transfer facility is known as the SPEED-e facility. SPEED-e is a facility by NSDL 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 SPEED-e 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, you also have that option.
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 (NSDL to NSDL).
• Inter-depository transfers happen when shares are moved from one depository to another( NSDL to CDSL).

As you might already know, you can manually transfer the shares held in your Demat account to another one. Now you can quickly initiate the online transfer of shares via NSDL SPEED-e. You no longer have to do it manually by filling and submitting DIS to your depository participant. Let’s take a look at more benefits. 

Benefits of NSDL SPEED-e App

• The registration and usage of this service is free of cost.
• It helps save your valuable time as well as money by eliminating the requirement to submit your DIS slip to DP.
• You can operate your Demat accounts from anywhere in the world.
• You can transfer securities 24 hours a day, 7 days a week through the Internet.
• It also helps you save cost incurred on paper/printing and the DIS books.
• It gives the highest level of safety in your Demat Account, as you are directly connected to Depository (CDSL).
• You can Check Holding balances in your account, submit the instructions and track its status.

Charges for the NSDL Transfer of Shares

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).

Timeline:

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 NSDL account to another then the transfer could be much faster – around 40 minutes or less.
• Inter-depository transfers: If the transfer is done from an NSDL account to a CDSL account, it would take the stipulated 4-5 hours.

NSDL SPEED-e Registration

As an NSDL user first you need to register as a SPEED-e 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 SPEED-e facility.

Read – NSDL IDeAS (SPEED-e) Registration: Procedure, Features & Charges 2022

Once your account, application, and information are validated by NSDL and the Bank, and the SPEED-e facility is activated, the broker and NSDL will inform you via email on the ID registered against your Demat account. This may take 5-7 working days.  

NSDL Share Transfer to CDSL Online

Once your account is linked, you can submit Delivery Instructions through the NSDL SPEED-e with these steps:

1. Please visit – https://eservices.nsdl.com. Log into your account.
   
2. Select and fill the ‘Delivery Instructions’ and fill in the following details:
   1. Execution date: The date on which you want the securities to get debited from your Demat account.
   2. Clearing Member (CM) – Pre-notified account of CM to whom securities need to be delivered.
      Note: Clearing Member whose CM BP ID is added by Client has to authorize the request for addition of pre-notified account through SPEED-e facility.
   3. Market Type and Settlement number under which securities need to be delivered
   4. ISIN of security and quantity
      
3. ‘Submit’ your request. You can also check the status through the “view” option.
   

Tax on Transfer of Shares

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.

Refusal

• 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 SPEED-e facility offered by NSDL. 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.