Off-market transfer charges at Zerodha

Overview

An off-market transfer is the movement of securities from one demat account to another without involvement of a stock exchange. Unlike exchange-settled trades (where the clearing corporation facilitates delivery), off-market transfers are direct demat-to-demat instructions settled through the depository (CDSL or NSDL) alone. Common scenarios include transferring shares as a gift, inheritance, restructuring of holdings between family members, or consolidating holdings from multiple demat accounts.

At Zerodha, off-market transfers from a client’s CDSL demat account carry a charge of Rs 25 per instruction or 0.03 percent of the transfer value, whichever is higher, plus 18 percent GST. This charge applies to both transfers initiated via the CDSL easiest portal and those processed through physical Delivery Instruction Slips (DIS) submitted to Zerodha.

Charge structure

Example 1: Transfer shares worth Rs 50,000. Charge = max(Rs 25, 0.03% x Rs 50,000) = max(Rs 25, Rs 15) = Rs 25. GST = Rs 4.50. Total = Rs 29.50.

Example 2: Transfer shares worth Rs 1,00,000. Charge = max(Rs 25, 0.03% x Rs 1,00,000) = max(Rs 25, Rs 30) = Rs 30. GST = Rs 5.40. Total = Rs 35.40.

Example 3: Transfer shares worth Rs 10,00,000. Charge = max(Rs 25, 0.03% x Rs 10,00,000) = max(Rs 25, Rs 300) = Rs 300. GST = Rs 54. Total = Rs 354.

The breakeven at which the percentage exceeds the minimum is Rs 83,333 (where 0.03% x Rs 83,333 = Rs 25).

Types of off-market transfers

Inter-depository transfer

Transfers between CDSL and NSDL demat accounts are inter-depository transfers. These involve both CDSL and NSDL and must be processed through a physical DIS because the automated CDSL easiest online instruction system only handles intra-CDSL transfers. An NRI client who holds an NSDL demat account and opens a Zerodha CDSL account may need an inter-depository transfer to move existing holdings.

Intra-depository transfer

Transfers between two CDSL accounts (for example, from a Zerodha CDSL account to a Groww CDSL account) are intra-CDSL transfers and can be processed online through CDSL’s easiest portal with OTP authentication.

Market transfer (on-market)

Transfers executed through the stock exchange (i.e., exchange-settled trades) are on-market transfers and are subject to normal trading charges (STT, exchange charges, brokerage, etc.) rather than the off-market transfer charge. Off-market transfers have no STT implication because no exchange transaction occurs; however, they may have income tax implications if they constitute a taxable transfer.

How to initiate an off-market transfer from Zerodha

Online via CDSL easiest

1. Client registers at easiest.cdsl.com using their CDSL demat account details.
2. Client submits a delivery instruction for the required ISIN, quantity, and target demat account.
3. CDSL validates and processes the transfer; the receiving DP credits the shares.
4. Zerodha is notified and debits the off-market transfer charge from the client’s ledger.

Physical DIS

Clients who do not have access to the CDSL easiest portal can request physical DIS slips from Zerodha. The completed and signed DIS slips are submitted to Zerodha’s registered office or DP processing centre. Zerodha processes the instruction through CDSL. An additional charge of Rs 25 per DIS applies for physical processing (in addition to the standard off-market transfer charge).

Income tax implications of off-market transfers

Off-market transfers are not exempt from income tax unless they qualify as gifts or bequests. Key tax considerations:

• Gift between relatives: A gift of shares from one family member to another is not taxable in the hands of the recipient under Section 56 of the Income Tax Act 1961 (gifts from specified relatives are exempt). However, when the recipient eventually sells the shares, capital gains are computed based on the original cost of acquisition (the transferor’s cost) and the period of holding includes the period the transferor held the shares.
• Gift between non-relatives above Rs 50,000: If shares are received as a gift from a non-relative and the fair market value exceeds Rs 50,000, the excess is taxable as income in the hands of the recipient under Section 56(2)(x).
• Sale through off-market transfer: If shares are transferred at a price (not as a gift), the transaction is a taxable transfer and capital gains apply. STT is not paid on off-market transfers, which means the concessional STT-paid rates under Sections 111A and 112A are not available; gains may be taxed at higher rates.

Comparison with on-market sale and repurchase

An alternative to off-market transfer (for consolidating holdings between two accounts of the same individual) is to sell the shares in account A through the exchange and buy them back in account B. This incurs:

• STT on both sides (0.1% delivery on buy and sell)
• DP charge on sell (Rs 15.93)
• Exchange charges, stamp duty, GST

For large holdings, the STT cost on an on-market round trip (0.2% of value) far exceeds the off-market transfer charge (0.03% of value). Off-market transfer is typically the more economical route for consolidating holdings, despite the absence of STT payment making future capital gains less tax-efficient.

See also

• Zerodha brokerage structure overview
• DP charges on Zerodha
• DDPI one-time charge
• Stamp duty by segment
• STT and CTT on Zerodha
• CMR/CML physical request charges
• Zerodha

References

1. Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
2. CDSL easiest portal – user manual and transaction types
3. SEBI (Depositories and Participants) Regulations 2018, Regulation 43 (transfer of securities)
4. Income Tax Act 1961, Section 56(2)(x) – taxation of gifts
5. Income Tax Act 1961, Section 47 – transactions not regarded as transfer (gift exceptions)
6. Income Tax Act 1961, Section 49 – cost of acquisition in case of gifted assets