Now gift stocks and ETFs to your friends and loved ones

Still not able to see SGBOCT28 in gift list, please advise by when your system list will be updated

@nithin please help settle this request/query

hey @ad9, these SGB’s are now added to our list of approved securities for gifting.

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Hi @Venkat_K,

Tax treatment for Sender
If you gift shares to your wife, it shall be considered as a ‘transfer’ and thus Capital Gains would arise. However, Section 47 of the Income Tax Act specifically excludes ‘gift’ from the definition of ‘transfer’. Thus, the sender of the gift is not liable to pay income tax on such transactions.

Tax treatment for receiver

On the sale of shares, Capital Gains would arise.
If shares were held for more than 12 months from date of purchase by previous owner (husband) to date of sale, LTCG or else STCG

  • Purchase Date = Date of purchase by the previous owner
  • Purchase Value = Purchase Value of the previous owner
  • Tax Liability = 10% under Section 112A since STT is paid on purchase and sale

Sorry for the delayed response, Hope this helps :slight_smile:

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Yes they indeed are now, many thanks @Nakul

Hi @Quicko

Thanks for the response. Your answer is contradicting the blog post of Zerodha and your website.

Kindly review your answer. Thanks.

Understand that Tax liability will arise only when we sell the holdings from receiving end, buy value will be original buy value.

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Hi @Venkat_K,

The donor of the gift is not required to pay any tax and so the tax treatment in the hands of the recipient of the gift is based on the cost of acquisition and holding period of the previous owner. We have rectified the same in the previous answer.

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@Quicko

Thanks a lot.

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@Nakul Gift Transfer from one Zerodha account to another was super smooth , all in 24-36hr. Great work Zerodha!
But in recipient account price is not updated due to Discrepancy
Console says - “To fix the discrepancy, you should add manual trades here with matching quantities. Trades added can not be edited/deleted once the price is updated.”

In Gift article it was given that prior day closing price is taken as incoming price.

Please clarify if system will auto update price or we need to manually in console.
Thanks

Could you please create a ticket here and DM the ticket number, so we can have this checked?

The above error is appearing while approving Gift transaction. Please resolve.

Ticket #20210125961383

Hey @Venkat_K, our team is working on a fix for this issue. Will update here as soon as this is fixed. Apologies for the inconvenience.

I was going through the list and didn’t find G-Secs. Are there plans to introduce G-Secs for gifting in the future?

Had raised a tkt and got prompt response that price of gift received is updated automatically by zerodha system in few days. Sharing response below for clarity to community.

“Please note that the buy average for shares received as Gifts will be automatically updated at our end in 6 to 7 working days. Until then it is a kind request to not enter any discrepant details from your end. In case if you have entered any details from your end the same will be deleted and the price will be updated as per the closing price of the stock on the day the transfer of the stock happens.”

When I opened my account with zerodha I had already given POA to zerodha. So I don’t have cdsl tpin. So in this case, can I still gift shares through zerodha online without cdsl tpin? Also, do I need to make a gift deed for gifting these shares?

@ShubhS9 can u please read my comment above and confirm if I can gift shares without cdsl tpin?

@Quicko hi, can u please read my comment above and let me know if I need to make gift deed for gifting shares.

Thanks to both of you.

You will have to approve the transfer using CDSL TPIN, you can generate the TPIN from here.

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Hey @Praksy

It is advisable to maintain documentation for gift transactions. Sender & Receiver should maintain a registered gift deed that can be used to justify the genuineness of the gift and avoid charges for tax evasion in case of scrutiny notice.

Regarding gifting of shares through Zerodha without CDSL tpin, you must check with the Zerodha team.

You can also read more about gifting shares and securities here.

Hope this helps! :slight_smile:

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Thanks @ShubhS9 and @Quicko.

You both are very helpful :grinning: :grinning:

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I have initiated a gift to my wife. She received notification and accepted the gift. I got notification about receiver accepting request with option to “Approve Gift”. I approved and in gift history it shows with status ‘CREATED’ But after that i did not get other process email for transfer. Will this happen next day or there is some glitch?