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Stamp duty is a government tax in India on trading in stocks, currency derivatives and commodities. It is collected by the stockbroker for issuing stamped contract notes at the end of the day.
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Stamp duty is charged on trading in stocks, currency derivatives and commodities in India. The stamp duty is a tax that is levied while issuing, selling or transferring the stocks, debentures, currency derivatives, and commodity instruments. The tax is collected for providing a stamped contract note to the traders at the end of the day.
The stamp duty applies to all securities market transactions including buying of Stocks, Mutual Funds, ETF, bonds etc. It is collected by stockbrokers or Clearing Corporations or by the Depositories. Subsequently, the collected stamp duty is disbursed to the respective states.
Trading Segment |
Stamp Duty Rate |
---|---|
Equity Delivery |
0.015% (Rs 1500 per crore) |
Equity Intraday |
0.003% (Rs 300 per crore) |
Futures (equity and commodity) |
0.002% (Rs 200 per crore) |
Options (equity and commodity) |
0.003% (Rs 300 per crore) |
Currency (F&O) |
0.0001% (Rs 10 per crore) on buy-side |
Mutual Fund |
0.005% (Rs 500 per crore) |
Note:
The stamp duty on 'Off-market transactions' is collected on the 'Consideration Amount' captured in NSDL & CDSL system based on the consideration amount mentioned on Delivery Instruction Slips (DIS) and Pledge invocation slips.
Transaction |
Stamp Duty Rate |
---|---|
Transfer and re-issue of debentures |
0.0001% (Rs 10 per Crore) |
Transfer of security on the delivery basis |
0.015% (Rs 1500 per Crore) |
Transfer of security on non-delivery basis |
0.003% (Rs 300 per Crore) |
Transfer of Mutual Fund Units |
0.015% (Rs 1500 per Crore) |
Following are the key changes applicable from 01st April 2020:
Answered on
Any issuance, transfer or sale of securities (through exchange or off-market) attracts stamp duty in India. It is collected by the Stock Exchanges, Depositories or Clearing Corporations.
The clearing corporation, stock exchanges, and depositories collect the stamp duty and transfer it to the Central Government within three weeks of each month.
Note: The stamp duty from buyers or allottees of securities will be collected by the authorities within the states where buyers reside.
Here is the table mentioning the stamp duty charges paid by the buyer or seller:
Transaction |
Who will pay stamp duty? |
---|---|
Sale of securities on the stock exchange |
Buyer |
Sale of Securities through offline markets |
Seller |
Transfer of security |
Transferor |
Issue of security |
Issuer |
Other Cases- making, drawing, or executing instruments |
Concerned Trader |
Note: Previously, stamp duty was paid by both the buyers and sellers of the stock transactions. Now, only investors buying stocks have to pay stamp duty. The seller of the securities will not pay any stamp duty.
As per the new amendments applicable from Jan 09, 2020, the following entities will collect the stamp duty on certain transactions:
Transaction Type |
Authority collecting Stamp Duty |
---|---|
Sale of securities (through a stock exchange) |
Stock exchanges |
Transfer of securities (through a depository) |
Depository |
Here are the two transactions which attract stamp duty for stocks:
No, government securities are exempted from stamp duty. Buying and selling of Government Securities will not attract any stamp duty charges.
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