Now gift stocks and ETFs to your friends and loved ones

We all have been in situations where we’ve spent several hours searching for the right gift for an occasion. Choosing a meaningful gift is never easy. One of the things we’ve wanted to do at Zerodha for a long time was to make gifting stocks, mutual funds, and bonds easier, but making the process seamless and online wasn’t possible. The only way to gift stock was to execute an off-market transfer by filling up a physical delivery instruction slip (DIS) and then sending it to us to complete the transfer.

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When i click on approve gift stock, in console, its says connecting to kite, and then white screen.
But not getting approve, trying for 2 days

Hi, you can raise ticket here, team will have this checked.

Hey @Quicko

I have shares of HDFCBANK purchased 2 years ago, i wanted to gift these shares to my Spouse.

Request your help in below matters.

  1. If i Gift today, today’s date will be considered for my tax liability? it will be LTCG)??
  2. Cost for these shares will be todays closing rate for my Spouse or Zero?
  3. In case Zero, when she sells, complete amount will be considered as taxable??

Please advice.

There will be no tax implication for the sender of the gift. However, there could be taxes on the receiver if the gift received is more than Rs 50,000. Check this article to know more.

The gift trade will be entered at the previous closing price available of the stock on the day the transfer. The holding transferred by the sender of the gift will be closed at the previous closing price of the stock, and the average price for the receiver of the stock will be the same closing price of the stock.

Hi @ShubhS9
Thanks for Quick response.

As I understand from the link, there is no LTCG tax liability for gifting of shares on Sender end and no tax on reciving also if it is received from spouse.

This looks like a tax loophole to avoid LTCG completely or I am not understanding correctly.

See as of now I am with gains of say 2Lac , all LTCG. Technically if i sell now from my account , i have to pay 10% LTCG on 1Lac gains (LTCG up to 1Lac exempted).

If i gift to my Spouse and sell from her account , her cost will be recent cost and tax liability will be very less or zero.

Please advice .

@Quicko will be able to address this query better.

This issue is for transacting through mobile. however, it is working fine in a Desktop chrome browser.

Just wondering why gifting the stock is better then just transfering the stock using cdsl easiest.

No her cost will not be recent but the cost of your purchase. Maybe quicko will give detail answer for you

We may not disclose our Buying dates/rates for Gift purposes, only Gift transaction records must be maintained as per the articles mentioned above.

I request @Quicko Team to clear this doubt.

Thanks

Yup thanks , i used desktop and done

What is the criteria to decide between Gifting of Stocks Vs Transferring Stocks via CDSL EASIEST.
I believe both options have the same Outcome (at least with respect to Stocks).

Also, I understand with CDSL EASIEST, one can transfer BONDS/NCDs, SGBs and Mutual Funds as well in addition to Stocks.
Pl. Clarify.

Also CDSL EASIEST has some charges for Transfer of Securities.
Any charges applicable for Stocks Gift via Zerodha ?

Finally does the sender and receiver need to Upgrade their CDSL accounts to EASIEST in order to execute Stocks Gift via Zerodha?

Pl. Clarify.
@siva @nithin

HI, I have initiated a Gift transaction on Dec 7th and approved the CDSL request also via OTP on the same day.

However, till now shares are not transferred.

Please advise, Ticket #20201212991837

Hi Venkat, we will have this checked.

@ShubhS9

Any update, please.

Solved now. Thanks!

@nithin @ShubhS9
Any reason why sovereign gold bond SGBAUG28V and SGBSEP28VI are appearing as eligible for sending by gift but SGBOCT28 is not coming in security eligible for gifting?
All three are SGB issued recently and trading in market, two can be gifted but one cannot!
Please help as i want to gift SGBOCT28 but not able to do so, thanks!

@Nakul Let’s add this in the list.

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