{"id":31578,"date":"2026-11-03T09:08:32","date_gmt":"2026-11-03T09:08:32","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=31578"},"modified":"2026-11-03T09:08:33","modified_gmt":"2026-11-03T09:08:33","slug":"inherited-stock","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/","title":{"rendered":"Inherited Stocks in India: Transfer Process &amp; Tax Rules"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When investing in the stock market, we often purchase shares ourselves; however, at times, we may also inherit shares from our family. Such shares often raise several questions for instance, how their value is determined, whether they are subject to tax upon sale, and how they can be transferred into one\u2019s own Demat account. Understanding these aspects makes it easier to manage inherited stocks.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#What_Is_Inherited_Stock\" title=\"What Is Inherited Stock?&nbsp;\">What Is Inherited Stock?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#How_Does_Inherited_Stock_Work_in_India\" title=\"How Does Inherited Stock Work in India?&nbsp;\">How Does Inherited Stock Work in India?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#How_to_Transfer_Inherited_Shares_to_a_Demat_Account\" title=\"How to Transfer Inherited Shares to a Demat Account&nbsp;\">How to Transfer Inherited Shares to a Demat Account&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#What_Is_the_Cost_Basis_of_Inherited_Stock_in_India\" title=\"What Is the Cost Basis of Inherited Stock in India?&nbsp;\">What Is the Cost Basis of Inherited Stock in India?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#How_Are_Inherited_Stocks_Taxed_When_Sold\" title=\"How Are Inherited Stocks Taxed When Sold?&nbsp;\">How Are Inherited Stocks Taxed When Sold?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#Should_You_Hold_or_Sell_Inherited_Stocks\" title=\"Should You Hold or Sell Inherited Stocks?&nbsp;\">Should You Hold or Sell Inherited Stocks?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#Common_Mistakes_to_Avoid_With_Inherited_Stocks\" title=\"Common Mistakes to Avoid With Inherited Stocks&nbsp;\">Common Mistakes to Avoid With Inherited Stocks&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#Conclusion\" title=\"Conclusion&nbsp;\">Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/inherited-stock\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"h-what-is-inherited-stock-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Inherited_Stock\"><\/span>What Is Inherited Stock?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">&#8216;Inherited stock&#8217; refers to shares that an individual receives as an inheritance. These shares may be acquired from a family member or another shareholder. Upon receiving them, the new owner must complete the process of transferring the shares into their own demat account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Example:<\/strong> Suppose Rohit inherits 100 shares from his uncle. His uncle had purchased these shares at a price of \u20b9200 per share. Now, if the market price of these shares is \u20b9350 per share, their current value would be \u20b935,000, whereas their total cost at the time of purchase was \u20b920,000.<\/p>\n\n\n\n<h2 id=\"h-how-does-inherited-stock-work-in-india-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Inherited_Stock_Work_in_India\"><\/span>How Does Inherited Stock Work in India?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To understand the process of handling inherited stocks in India, follow these steps:<\/p>\n\n\n\n<h3 id=\"h-step-1-figuring-out-entitlement-to-the-shares\" class=\"wp-block-heading has-medium-font-size\">Step 1: Figuring out entitlement to the shares<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at a will, a nominee, or succession laws, we see who should receive the shares&nbsp;<\/p>\n\n\n\n<h3 id=\"h-step-2-identify-the-shareholdings\" class=\"wp-block-heading has-medium-font-size\">Step 2: Identify the shareholdings<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This involves determining which company\u2019s shares the deceased investor held, the quantity of such shares, and where they were maintained.<\/p>\n\n\n\n<h3 id=\"h-step-3-transfer-ownership\" class=\"wp-block-heading has-medium-font-size\">Step 3: Transfer ownership<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once the prescribed procedure is completed and the claim is accepted, the shares are transferred to the eligible person\u2019s Demat account.<\/p>\n\n\n\n<h3 id=\"h-step-4-exercise-rights-as-the-new-owner\" class=\"wp-block-heading has-medium-font-size\">Step 4: Exercise rights as the new owner<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Following the transfer, the new owner becomes entitled to receive dividends and may benefit from or incur losses due to fluctuations in the share price.<\/p>\n\n\n\n<h3 id=\"h-step-5-decide-whether-to-retain-or-sell-the-shares\" class=\"wp-block-heading has-medium-font-size\">Step 5: Decide whether to retain or sell the shares<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The new owner may choose to hold or sell the shares, depending on the company\u2019s performance and their own financial needs. If the shares are sold, capital gains tax is calculated in accordance with the applicable regulations.<\/p>\n\n\n\n<h2 id=\"h-how-to-transfer-inherited-shares-to-a-demat-account-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Transfer_Inherited_Shares_to_a_Demat_Account\"><\/span>How to Transfer Inherited Shares to a Demat Account&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To transfer inherited shares into your Demat account, you must contact the broker or bank where the shares are currently held. You will then need to complete the following steps<\/p>\n\n\n\n<h3 id=\"h-step-1-contact-the-relevant-broker\" class=\"wp-block-heading has-medium-font-size\">Step 1: Contact the relevant broker<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">First, identify <a href=\"https:\/\/www.pocketful.in\/broker\">which broker <\/a>or Depository Participant (DP) holds the shares and inquire about their specific share transfer process.<\/p>\n\n\n\n<h3 id=\"h-step-2-fill-out-the-transmission-form\" class=\"wp-block-heading has-medium-font-size\">Step 2: Fill out the Transmission Form<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Obtain a &#8216;Transmission Request Form&#8217; from the broker and provide the details of the person who is to receive the shares.<\/p>\n\n\n\n<h3 id=\"h-step-3-submitting-the-required-documents-nbsp\" class=\"wp-block-heading has-medium-font-size\">Step 3: Submitting the required documents&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You need to submit the death certificate, PAN card, and KYC details. If no nominee was named, you might also have to show a will or other legal paperwork.&#8221;&nbsp;<\/p>\n\n\n\n<h3 id=\"h-step-4-provide-your-demat-account-details\" class=\"wp-block-heading has-medium-font-size\">Step 4: Provide your Demat account details<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Submit the details of the Demat account into which the shares are to be transferred, along with any necessary account-related documents.<\/p>\n\n\n\n<h3 id=\"h-step-5-document-verification-process-nbsp\" class=\"wp-block-heading has-medium-font-size\">Step 5: Document verification process&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The broker goes through all your submitted paperwork. If they find any missing or incomplete information, they&#8217;ll get in touch so you can send over the required details.<\/p>\n\n\n\n<h3 id=\"h-step-6-checking-the-shares-in-your-account-nbsp\" class=\"wp-block-heading has-medium-font-size\">Step 6: Checking the shares in your account&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once approved, the broker credits the shares directly to your Demat account. Simply log in to verify that the share count and account details line up correctly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/personal-finance\/tax-on-shares-received-as-gifts\/\">Tax on Shares Received as Gifts: Rules for Investors<\/a><\/p>\n\n\n\n<h2 id=\"h-what-is-the-cost-basis-of-inherited-stock-in-india-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_the_Cost_Basis_of_Inherited_Stock_in_India\"><\/span>What Is the Cost Basis of Inherited Stock in India?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you inherit shares, it is essential to determine the price at which the previous owner originally purchased them. This purchase cost is used to calculate the profit or loss realized when the shares are sold. This is known as the &#8220;cost basis&#8221; of inherited stock. In India, the original purchase cost incurred by the previous owner generally serves as the basis for inherited shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-example-of-the-cost-basis-of-inherited-stock\"><strong>Example of the Cost Basis of Inherited Stock<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you inherit 100 shares of a company. The previous owner had purchased them at a price of \u20b9200 per share. At the time you received the shares, the market price was \u20b9300.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Description<\/th><th class=\"has-text-align-center\" data-align=\"center\">Amount<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Original purchase cost of shares<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b920,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Market value at the time of inheritance<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b930,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Amount on selling the shares later at \u20b9350 per share<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b935,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Profit, before other adjustments<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b915,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here, the profit has been calculated by subtracting \u20b920,000 from \u20b935,000, rather than by subtracting the \u20b930,000 market value that existed at the time the inheritance was received.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-what-if-the-purchase-price-of-old-shares-is-unknown\"><strong>What if the purchase price of old shares is unknown?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In such a situation, refer to old broker statements, purchase contract notes, and demat records. If the shares are very old, or if there have been bonus issues or stock splits in the interim, additional information may be required to calculate the cost. Instead of estimating the cost, verify it based on available records.<\/p>\n\n\n\n<h2 id=\"h-how-are-inherited-stocks-taxed-when-sold-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Are_Inherited_Stocks_Taxed_When_Sold\"><\/span>How Are Inherited Stocks Taxed When Sold?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In India, receiving inherited shares generally does not attract capital gains tax. However, when you sell these shares, you may be liable to pay tax on the profit earned from the sale, in accordance with the applicable rules. When calculating the tax, factors such as the original owner&#8217;s acquisition cost and the total duration for which the shares were held are taken into account.<\/p>\n\n\n\n<h3 id=\"h-short-term-and-long-term-capital-gains-tax\" class=\"wp-block-heading has-medium-font-size\">Short-Term and Long-Term Capital Gains Tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the inherited shares are equity shares listed on an Indian stock exchange and the relevant conditions regarding the Securities Transaction Tax (STT) are met, the applicable tax rates are as follows:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Type of capital gain<\/th><th class=\"has-text-align-left\" data-align=\"left\">Applicable tax rate<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Short-Term Capital Gains (STCG)<\/td><td class=\"has-text-align-left\" data-align=\"left\">20%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Long-Term Capital Gains (LTCG)<\/td><td class=\"has-text-align-left\" data-align=\"left\">12.5% \u200b\u200bon eligible gains exceeding \u20b91.25 lakh<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These rates apply to eligible share sale transactions that take place on or after July 23, 2024. The final tax amount may also include applicable surcharges and cesses. Different rules may apply to other types of shares.<\/p>\n\n\n\n<h3 id=\"h-provide-sales-details-in-your-tax-return\" class=\"wp-block-heading has-medium-font-size\">Provide sales details in your tax return<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After selling shares, keep the relevant contract notes, old purchase records, and capital gains calculations safe. You can use these records to provide accurate information when filing your tax return.<\/p>\n\n\n\n<h3 id=\"h-can-shares-be-sold-immediately-after-being-inherited\" class=\"wp-block-heading has-medium-font-size\">Can shares be sold immediately after being inherited?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Generally, shares can be sold once they have been transferred to <a href=\"https:\/\/www.pocketful.in\/open-demat-account\">your Demat account<\/a> and are available for sale. However, before selling, check the records regarding their acquisition cost and the holding period of the previous owner, so that capital gains can be calculated accurately.<\/p>\n\n\n\n<h2 id=\"h-should-you-hold-or-sell-inherited-stocks-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Should_You_Hold_or_Sell_Inherited_Stocks\"><\/span>Should You Hold or Sell Inherited Stocks?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deciding whether to hold or sell inherited shares depends on the company&#8217;s performance and your own need for funds. Do not hold onto shares simply because they were inherited from family.<\/p>\n\n\n\n<h3 id=\"h-when-should-you-hold-inherited-stocks\" class=\"wp-block-heading has-medium-font-size\">When Should You Hold Inherited Stocks?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the company\u2019s earnings are sound, it is not burdened by excessive debt, and there is potential for future business growth, you might consider holding the shares. However, strong company performance does not guarantee an increase in the share price.<\/p>\n\n\n\n<h3 id=\"h-when-should-you-sell-inherited-stocks\" class=\"wp-block-heading has-medium-font-size\">When Should You Sell Inherited Stocks?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the company\u2019s business is consistently weakening, its financial health is deteriorating, or you require funds for essential expenses, you might consider selling the shares. Before making a decision, be sure to review the company\u2019s recent financial reports and the current share price.<\/p>\n\n\n\n<h3 id=\"h-what-should-you-check-before-making-a-decision\" class=\"wp-block-heading has-medium-font-size\">What Should You Check Before Making a Decision?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before deciding to hold or sell, examine the company\u2019s earnings, debt levels, current valuation, and its weightage within your overall portfolio. For instance, if a large portion of your investments is already concentrated in a single company, holding additional shares of that same company could increase your risk.<\/p>\n\n\n\n<h2 id=\"h-common-mistakes-to-avoid-with-inherited-stocks-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_to_Avoid_With_Inherited_Stocks\"><\/span>Common Mistakes to Avoid With Inherited Stocks&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the case of inherited shares, minor oversights can lead to complications later on. Keep the following points in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Failure to locate records of original share purchases<\/strong>: Retain the original purchase records. Without these, determining the actual acquisition cost of the shares especially when calculating taxes can become difficult.<\/li>\n\n\n\n<li><strong>Assuming the nominee is the ultimate owner<\/strong>: Just having a nominee listed on a Demat account doesn&#8217;t automatically settle every inheritance dispute. When there is a will involved or questions arise among legal heirs, you really need to check what the legal rules actually say.<\/li>\n\n\n\n<li><strong>Overlooking bonus shares and stock splits<\/strong>: If the original owner received bonus shares or if the company underwent a stock split, the total number of shares and the cost per share will be affected. Therefore, review the company\u2019s corporate action records.<\/li>\n\n\n\n<li><strong>Applying the same tax rules to all shares<\/strong>: Tax rules aren&#8217;t the same for listed equity shares, unlisted shares, and other asset types. Before you sell anything, double-check which category your shares fall into and what specific tax rules apply to them.<\/li>\n\n\n\n<li><strong>Not verifying records after the share transfer<\/strong>: When the transmission process finishes, check your Demat account to make sure the share count and company names are accurate. If you spot any mismatch, reach out to your broker or Depository Participant straight away.<\/li>\n\n\n\n<li><strong>Filing tax returns without proper historical records<\/strong>: Once you sell your shares, hold onto the sale contract notes, proof of the original purchase cost, and your capital gains math. Don&#8217;t rely on guesses, always verify your numbers against proper records before filing.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-conclusion-nbsp\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have inherited stocks, do not be in a hurry to sell them. First, check how the company\u2019s business is performing and ensure that you have the relevant historical documents for the shares. If you decide to sell the shares, be sure to calculate the tax implications so that you do not face any issues later.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/taxation\/long-term-capital-gain\/\">Long-Term Capital Gain (LTCG) Tax on Mutual Funds<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/tax-on-gold-investment-in-india\/\">Tax on Gold Investment in India: Physical, Digital &amp; SGB Explained<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/taxation\/long-term-capital-gain\/\">LTCG Tax on Mutual Funds \u2013 Rates &amp; Taxation Explained<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-tax-free-bonds\/\">Tax-Free Bonds: Their Features, Benefits, and How to Invest<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/why-do-we-pay-taxes-to-the-government\/\">Why Do We Pay Taxes to the Government?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-frequently-asked-questions-faqs\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">Can stocks be inherited in India?<\/h3><p class=\"saswp-faq-answer-text\">Yes, stocks can be inherited, subject to applicable succession laws and the required procedures.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How do I transfer inherited stocks to my Demat Account?<\/h3><p class=\"saswp-faq-answer-text\">To do this, you must submit a transmission application and the necessary documents to the relevant broker or Depository Participant (DP).<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What is the cost basis of inherited stock?<\/h3><p class=\"saswp-faq-answer-text\">Generally, the original owner\u2019s purchase cost is considered the basis, subject to applicable tax regulations.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How are inherited stocks taxed when sold?<\/h3><p class=\"saswp-faq-answer-text\">Capital gains arising from the sale of these stocks may be subject to tax in accordance with the applicable rules.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Can I sell inherited stocks immediately?<\/h3><p class=\"saswp-faq-answer-text\">Generally, you can sell the stocks once they have been transferred to your Demat account and are available for sale.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>When investing in the stock market, we often purchase shares ourselves; however, at times, we may also inherit shares from our family. Such shares often raise several questions for instance, how their value is determined, whether they are subject to tax upon sale, and how they can be transferred into one\u2019s own Demat account. Understanding [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":31590,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-31578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inherited Stocks in India: Transfer Process &amp; Tax Rules<\/title>\n<meta name=\"description\" content=\"Learn how inherited stocks work in India, how to transfer shares to a Demat account, calculate cost basis, and understand capital gains tax rules.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inherited Stocks in India: Transfer Process &amp; 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