Transfer of Shares in Vadapalani - Filingpoint

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Filingpoint Transfer of Shares is the process of transferring ownership of shares in a company from one person to another. This can be done for various reasons, including to raise capital or to gift shares to family members. There are several steps involved in a share transfer, including the drafting of a purchase and sale agreement and the payment of stamp duty.

Depending on when the transfer takes place, the existing owner of the shares might be liable to pay short-term or long-term capital gains tax. In addition, stamp duty will need to be paid, which is typically 0.5% of the value paid for the shares. This will need to be paid by both the seller and the buyer, depending on the circumstances of the transfer.

While it is not a legal requirement to draft a transfer of share agreement, it is strongly advised as it creates a record between two parties and helps avoid discrepancies or disagreements in the future. The document includes essential information such as the name and address of both the transferor and the transferee, the type of shares being transferred, and the price at which they are being sold.

In order to transfer shares from one demat account to another, the investor needs to fill out a DIS (Delivery Instruction Slip) and submit it to their current broker. This will be forwarded to the depository, which will then transfer the shares to the new demat account.

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