Gifting stocks is a thoughtful way to teach your loved ones about investing in the stock market. It can help the recipient start his investment journey or understand the importance of long-term investing as well as the benefits of investing in high-quality stocks. Furthermore, gifting stocks can be a valuable gift that can potentially grow in value over time, making it a thoughtful present for any occasion.
Zerodha is a popular discount broker in India that allows you to gift stocks and ETFs hassle-free. In this blog post, we will discuss the step-by-step process of gifting stocks and ETFs in Zerodha, how to accept gifted stocks, related questions, the advantages and disadvantages of stock gifting, and alternatives to stock gifting.
Benefits of Using Zerodha for Stock Gifting:
Zerodha is an excellent platform for gifting stocks as it offers various advantages over traditional brokers. Some of the benefits of using Zerodha for stock gifting include:
- No minimum balance requirement: Zerodha does not have any minimum balance requirement, making it an excellent platform for small and frequent investments.
- Zero brokerage: Zerodha offers zero brokerage on equity delivery trades, which makes it a cost-effective platform for gifting stocks.
- User-friendly interface: Zerodha’s interface is user-friendly, making it easy to gift stocks to your loved ones.
How to Gift Stocks in Zerodha
Step 1: Log in to your Console.Zerodha.Com account.
Step 2: Click on the top right corner menu of the screen.
Step 3: Click on the ‘Gift Stocks’ tab.
Step 4: Enter the recipient’s name, email id, and mobile number.
Step 5: Select the stocks and quantity you wish to gift
Step 6: Review the details and click on “Confirm and send”.
The recipient will receive an email and an SMS with the details of the gifted stocks.
Step 7: After the gift is accepted, you have to click on “Approve” from your Console’s gift stocks page. That will lead you to the CDSL portal.
Step 8: Authorize your share transfer using CDSL TPIN at the CDSL portal.
Necessary Details Required for Stock Gifting:
- Zerodha account
- Recipient’s name
- Recipient’s email id (optional)
- Recipient’s mobile number
- Quantity and name of the stocks to be gifted
- CDSL TPIN
Limitations and Guidelines for Stock Gifting:
There are a few limitations and guidelines that you need to keep in mind when gifting stocks on Zerodha:
- You can only gift stocks to individuals who have a Zerodha account.
- You cannot gift stocks to your own account.
- There can be tax implications on stock gift amount above Rs. 50,000
You can also check out our latest guide on how to apply for an IPO in Zerodha to resolve all your queries regarding IPO investment.
How to Gift ETFs in Zerodha:
Exchange-Traded Funds (ETFs) are funds that are traded on stock exchanges, just like stocks. They track the performance of an underlying index, commodity, or basket of assets. In simple words, ETFs are investment funds that are traded on stock exchanges like a stock.
The process of gifting ETFs is similar to that of gifting stocks. Here are the steps to gift ETFs on Zerodha:
Step 1: Log in to your Console.Zerodha.Com account.
Step 2: Click on the top right corner menu of the screen and select the “Gift Stocks” option.
Step 3: Enter the recipient’s name, email ID, and Phone number.
Step 4: Select the ETF that you want to gift and click on the “Confirm and send” button
The recipient will receive an email and an SMS with the details of the gifted stocks.
Step 5: After the recipient accepts the gifted ETFs, you have to click on “Approve” from your Console’s gift stocks page. That will lead you to the CDSL portal.
Step 6: Authorize your share transfer using CDSL TPIN at the CDSL portal.
B. Necessary details required for ETF gifting
To gift ETFs on Zerodha, you need to have the following details of the recipient:
- Name
- Email ID
- Phone number
- CDSL TPIN
Additionally, you should also have the details of the ETF you want to gift, including the name, quantity, and current market value.
C. Limitations and guidelines for ETF gifting
Here are some limitations and guidelines for gifting ETFs on Zerodha:
- Only ETFs held in demat form can be gifted.
- The ETFs can only be gifted to a Zerodha account holder.
- The recipient must accept the gift within seven days of receiving the email notification.
- The ETFs can only be gifted to an individual and not to a company or trust.
If you have a new Zerodha demat account, you can read our guide on how to get Zerodha CMR copy online to know more about Client Master Report in detail.
How to Accept Gifted Stocks
Once you have been gifted stocks on Zerodha, you need to accept them to add them to your demat account. Here are the steps to accept gifted stocks:
Step 1: Click on the link in the email or SMS regarding gifted stocks/ETFs.
Step 2: Log in to Zerodha account
Step 3: Click on “Accept gift”.
Now the sender will have to approve the request further using CDSL TPIN and after that stocks/ETFs will be reflected in your holdings.
B. Necessary details required to receive gifted stocks
- A valid Zerodha account.
- A valid Demat account is linked to your Zerodha account.
- Your Demat account number.
Charges for Gifting Stocks in Zerodha
You have to pay a standard off-market transfer fee of Rs. 25 + 18% GST or 0.03% per stock, whichever is higher.
For example, you are gifting Airtel, Britannia, and Coal India shares to your family member. Your charges would be applicable as mentioned below –
| Share | Quantity | Share Price | Share Amount | Off-market transfer fee at 0.03% (in Rs) | Off-market transfer fee at Rs. 25 | Considered Amount |
| Tata Motors | 50 | 410 | 20500 | 6.15 | 25.00 | 25.00 |
| ITC | 50 | 350 | 17500 | 5.25 | 25.00 | 25.00 |
| HUL | 40 | 2440 | 97600 | 29.28 | 29.28 | 29.28 |
| Applicable fees | 79.28 | |||||
| GST @18% | 14.27 | |||||
| Total charges | 93.55 |
If you have stocks with other brokers and want to transfer to Zerodha’s demat account, then you can go through our two guides – How to transfer shares from ICICI Direct to Zerodha and How to transfer shares from Upstox to Zerodha for a better understanding the process.
FAQs
1. What are the tax implications of gifting stocks?
When you gift stocks to someone, it is considered a transfer of capital assets and is subject to capital gains tax if the amount is above Rs. 50,000. The capital gains tax is calculated based on the fair market value (FMV) of the stocks on the date of transfer.
You should file ITR-2 and pay tax at applicable rates if your gifted amount is above Rs. 50K.
2. Can I gift fractional shares to my family member on Zerodha?
Yes, you can gift fractional shares on Zerodha in the form of ETFs.
3. Can I gift stocks to a minor through Zerodha?
Yes, you can gift stocks to a minor through Zerodha if he has a minor account in Zerodha.
4. Can I gift stocks to someone outside India?
No, you cannot gift stocks to someone outside India through Zerodha. The gifting feature is currently only available for Indian residents.
5. What is the minimum amount of stocks that can be gifted on Zerodha?
No minimum amount is required
6. Is there a fee for gifting stocks on Zerodha?
You have to pay a standard off-market transfer fee of Rs. 25 + 18% GST or 0.03% per stock, whichever is higher.
7. Can I revoke the gift of stocks once it has been made?
No, once the shares have been gifted, they cannot be revoked.
8. How does the recipient claim the gifted stocks?
If the recipient is an existing Zerodha user, the gifted shares will be credited to their Demat account automatically.
9. How does the recipient claim the gifted stocks?
Once the gift of stocks is made, Zerodha will send an email or sms to the recipient notifying them about the gift.
The email or sms will contain a link that will take the recipient to the acceptance page where they will be required to enter their Zerodha account details and accept the gift. The gifted stocks will then be transferred to the recipient’s Zerodha Demat account.
10. What to do if Zerodha’s gift stock not showing in holdings?
You can contact Zerodha support to resolve the issue.
11. Can I gift mutual funds in Zerodha?
No, gifting mutual funds is currently not available on Zerodha or any other platform.
Conclusion
In conclusion, gifting stocks through Zerodha is a simple and convenient way to give a unique and thoughtful gift to your loved ones. It is a perfect way to introduce someone to the world of investing, and at the same time, you can help them grow their wealth. Moreover, with the benefits of minimal charges and no hassle of paperwork, Zerodha offers a user-friendly platform for gifting stocks.
We have provided you with a comprehensive guide on how to gift stocks in Zerodha, along with guidelines, limitations, and FAQs to help you with the process. We hope that this guide has answered all your questions and provided you with the necessary information to make a sound decision on gifting stocks.
With stock gifting, you can not only give your loved ones a meaningful and unique gift but also help them secure their financial future. So, what are you waiting for? Start gifting stocks today and help your loved ones embark on their investing journey with Zerodha.
