Stamp Duty Charges

The uniform stamp duty rates for stock market transactions in India.

The stamp duty is charged to traders and investors at the time of trading in stocks, currency derivatives and commodities in India. Brokers have to give a stamped contract note to a client depicting transaction details and thus the payment of stamp duty is mandatory. Detail of stamp duty charged is based on traded volume and is mentioned in a contract note.

From 1 April 2020, unified stamp duty is introduced to simplify the calculation and collection of stamp duty. The uniform stamp duty rates (for stock market transactions only) will apply to the customers across the states. The off-market transaction including the transfer of shares at the time of inheritance, gifts and transactions in unlisted securities will also attract stamp duty.

Stamp Duty Rates on Trading

Trading Segment Stamp Duty Rate
Equity Delivery 0.015% (₹1500 per crore) on buy-side
Equity Intraday 0.003% (₹300 per crore) on buy-side
Futures (Equity and Commodity) 0.002% (₹ 200 per crore) on buy-side
Options (Equity and Commodity) 0.003% (₹300 per crore) on buy-side
Currency 0.0001% (₹10 per crore) on buy-side

Stamp Duty on Off-Market Transaction

Transfer of Securities Stamp Duty Rate

Transfer and re-issue of debentures

0.0001% (₹10 per crore)

Transfer of security on delivery basis (other than debenture)

0.015% (₹1500 per crore)

Transfer of security on non delivery basis (other than debenture)

0.003% (₹300 per crore)

Benefits of Unified Stamp Duty for Stock Market :

  • Residents of all states will pay the same rate.

  • Stamp Duty is payable only by the buyer. Investors selling stocks won’t need to pay stamp duty.

  • The stamp duty rate for currency and interest rate derivatives has been reduced from ₹200 per ₹1 crore to ₹10 per ₹1 crore.

  • This will simplify the stamp duty compliance procedure for brokers. Exchange and depositories will now take care of payment of stamp duty to states.

FAQs

On selling of securities, stamp duty will be charged from the buyer of the securities. The rate of stamp duty will depend upon the type of security you are selling or buying.

Depending upon sale, transfer, and issuance of securities, the stamp duty will be charged by different authorities.

  • Sale of Securities- Stock Exchange or Clearing Corporation

  • Transfer of Securities- Depository

  • Issue of Securities- Depository

After the amendments, Issue and reissue of debentures, transferring debenture against off-market trade or delivery trades and transferring any Equity and Equity related securities will now attract stamp duty. The customers will be charged 0.005%, 0.0001%, 0.0001%, and 0.015% stamp duty, respectively.

Previously, stamp duty was divided and collected from both the buyer and seller, separately. After recent changes in Indian stamp duty, the buyer of the securities will be liable to pay the stamp duty. Such as; If you are selling the securities, you are not required to pay any stamp duty.