How do I gift stocks?
You can gift stocks, ETFs, and gold bonds from your demat account to anyone completely online. If the recipient does not have a Zerodha account, they can create a new account and receive the gift.
See the video tutorial How do I gift stocks? (video) or follow the steps below:
- Visit console.zerodha.com/gift
- Enter the name, mobile number, and email address of the recipient.
- Select the stocks, ETFs, Gold bonds you wish to gift that are approved for gifting. See List of stocks approved for gifting .
Wait for the recipient to accept the gift within 7 days from the e-mail or SMS notification that is sent. If they have a Zerodha account, they can accept it instantly, otherwise, they can open a new account first and then accept. See
How do I receive stocks gifted to me?
The stocks are not transferred out of your demat account at this point.
Once the recipient accepts the gift, you will receive an email and SMS notification asking to confirm the recipient’s identity and also to confirm the transfer of stocks from your demat account using your CDSL TPIN. See
How do I generate the CDSL TPIN required to authorise my CNC sell transactions?
Once this is done, Zerodha will set up an off-market gift transaction at CDSL that you need to verify using an OTP sent to you by CDSL.
Once this is done, at 5 PM on the same day, if it is a trading day or the next trading day, you will receive an e-mail and SMS from CDSL asking you to confirm the off-market gift transaction on the CDSL website. Enter your PAN or your 16 digit demat account ID and complete the SMS OTP verification by 8 PM on the same day.
If the OTP verification is not completed by 8 PM on the same day, the gifting process has to be reinitiated
- The stocks disappear from your holdings and appear in the recipient's holdings on the next day.
What are the fees for gifting?
There are no additional charges for gifting apart from the standard off-market transfer fee of ₹25 + 18% GST or 0.03% per stock, whichever is higher. This is automatically debited from the sender’s trading account. See How do I calculate the charges on gifting?
What are the tax implications of gifting?
The tax implications depend on the value of the stocks gifted. The recipient may have tax implications if the value of the gift exceeds ₹50,000. Check this article to know more about the tax implications for both the sender & receiver. See Is there any income tax implications on gifting of shares?
Gifting stocks from your account and selling them at the same time may result in an exchange auction penalty.
- For tracking and reporting purposes, we consider the closing price of the stock on the day the stock gets transferred as the exit price for the person gifting the stock and the same price is used as an entry price for the person receiving the gift. The average price is updated within 3 working days after the stocks are transferred. We have taken the most conservative view. While filing for income tax a different view on what should be acquisition price can be taken.
Unsettled shares or T1
shares cannot be gifted. See
What does settlement cycle mean?