How to do an off-market transfer to a family member via Zerodha

Tue, 12 May 2026 00:00:00 +0000

Transferring shares from your Zerodha demat account to a family member’s demat account is a common estate-planning and gifting transaction. Under the Income Tax Act, 1961, a transfer of securities at nil consideration (gift) from one individual to a relative is exempt from the provisions of Section 56(2)(x) (gifts taxable as income). Relatives include spouses, siblings, parents, children, in-laws, and certain other lineal descendants as defined in the Act.

The technical process is an off-market transfer executed through CDSL Easiest, identical to a broker-switch transfer except that the target BO ID belongs to a different person rather than the same person at a different broker.

Family Transfer on WebNotes

How to do an off-market transfer to a family member via Zerodha