The circular simplify the process of transferring securities from a nominee to a legal heir. It address a long-standing issue where a nominee, acting as a trustee, was incorrectly assessed for capital gains tax during the transfer, despite such transmissions being exempt under the Income Tax Act. The reporting entities, including Registrars to an Issue and Share Transfer Agents (RTAs), listed issuers, and depositories, are now directed to use a specific reason code, “TLH” (Transmission to Legal Heirs), when reporting these transactions to the CBDT. This measure is intended to ensure the correct application of tax laws and streamline the process.