Uniform Stamp Duty
Stamp duty will be charged uniformly irrespective of the state of residence effective from July 1st, 2020 via this notification. Until now, stamp duty was charged at different rates based on your resident state. We (brokerage firms) used to collect from you and pay it monthly to the respective state government. Going forward we will collect and pay it to the exchanges who will, in turn, pass it back to the central government.
Old rates
Check this link to see how much you were paying until now. Most states were charging in the range of Rs 200 to Rs 300 per crore for intraday/derivatives and Rs 1000 per crore for equity delivery trades. Some states like Telangana, Haryana, etc. had a maximum cap per contract note on the stamp duty.
New rates
| Type of trade | New stamp duty rate |
|---|---|
| Delivery equity trades | 0.015% or Rs 1500 per crore on buy-side |
| Intraday equity trades | 0.003% or Rs 300 per crore on buy-side |
| Futures (equity and commodity) | 0.002% or Rs 200 per crore on buy-side |
| Options (equity and commodity) | 0.003% or Rs 300 per crore on buy-side |
| Currency | 0.0001% or Rs 10 per crore on buy-side |
| Mutual funds | 0.005% or Rs 500 per crore on buy-side |
| Bonds | 0.0001% or Rs 10 per crore on buy-side |
In the 2019-20 Union Budget, stamp duty was made uniform across all states. Check Page 14 on the finance bill. Here are the links to the circulars from various exchanges: Equity, Futures & Options, Currency, Offer for Sale, Offer for Takeover/Delisting/Buy-back, and Commodity. We will update the latest stamp duty on our brokerage calculator from July 1st.
How does it compare to old rates
The new rates are only on the buy-side and not on both buy and sell-side. So stamp duty costs for most of you will reduce by over 50%. Active traders who were residing in states which had a cap on maximum stamp duty per day per contract note, will not enjoy the benefit of the cap going forward, hence will be negatively affected. There was no stamp duty earlier for offline transfer of shares or mutual funds using DIS (delivery instruction slip), now there will be based on the consideration amount entered on the DIS slip at the same rates as delivery trades (0.015% or Rs 1500 per crore on buy-side).
How does it affect Mutual fund transactions
Stamp duty of 0.005% will be charged on your mutual fund purchase. The applicable stamp duty will be adjusted with the units allotted to you rather than being separately charged.
Assume you intend to invest Rs.10,000/- in a fund, then the applicable stamp duty is – Rs.10,000 * 0.005% = 0.5 (50 Paisa)
Hence your investment amount is adjusted for stamp duty and gets reduced to Rs.9,999.5/.
The number of units you get is – Rs.9,999.5 / 10 = 999.95.
You can read about mutual fund transactions in more detail here.
Happy Trading,
How does payment of Stamp Duty help the end customer?
Govt is definitely getting revenue from every transaction.
If there is no legal benefit then why should end user pay?
Account open
Hey Jay, we’ve explained the account opening process here: https://support.zerodha.com/category/account-opening/online-account-opening/online-account-opening-process/articles/how-do-i-open-an-account-online
If you are enquiring about your account opening status, please share your registered contact details over a ticket from the link above and we’ll have it checked.
what is the stamp duty for contract note? Where does such a charge emanate from as I can’t seem to find it in any Act or rules?
Check out the link in the above post, Hari.
BAD NEWS FOR HIGH VOLUME TRADER. THERE IS NO UPPER LIMIT.
Many brokerage firms are in the process of starting accounts in NYSE. Zerodha is also in the testing phase. Very soon you will be able to trade/ invest in Nasdac/DowJones/ S&P 500, but buying these stocksis expensive for an Indian customer.
Government needs to Abolish STT or Abolish capital gains tax totally on Stock trading. If government want to more participants and revenue from this market. Why stick to rules ( STT ) introduced by Congress Government does not the BJP government not have its own wisdom. (STT was originally introduced in 2004 by the then Finance Minister, P. Chidambaram to stop tax avoidance of capital gains tax)
Please correct Mutual Fund Stamp Duty section.
10000 – 0.5 = 9999.50 but it is shown as 9999.95
Whats about himachal pradesh
The gov.should remove these duty and there should be no income tax as well. Only expense tax which use to happens before Britishers.
notification kabhi hindi bhi likho, desh me english kam samjte he ,to english k sath hindi me bhi likhiye…..
Ask govt to reduce STT at least 50% for intra and delivery transaction.
Calculation error in example
9999.50, not .95
I agree..
So if i sell and option and it it expires at 0 or .05paise, i dont need to pay stamp duty. is this right?
You’re right. If your option short position expires worthless, then there would be no stamp duty you would have to pay.
In your calculation you have deducted only 5 paise instead of 50 paise. Pls edit it. Thanks.
Anand, we’ve mentioned it as Rs. 0.5 or 50 paisa.
I agree
In Himachal Pradesh the stamp duty is Rs. 50 per day which is more than other states like Rajasthan. In Rajastan the stamp duty per day is almost 20 paisa. Reduce the stamp duty for Himachal Pradesh
There is no stamp duty on commodities for Tamil Nadu… What abt now???
Will you guys shut your mouth and get back to business
Please update the brokerage calculator with new stamp duty. We use that tool mostly for calculating Break even point..The very nice and handy tool of Zerodha
Sayantan, the brokerage calculator is updated already.
I agree
What is the Stamp duty
What about ETF
What is the Stamp duty for ETF
ETF’s will be charged at the same rate as equities, as mentioned in the post.
Now tax man banging us with tens of thousands of rupees a day Instead 50 rupees a day.even complaining to Andhra Pradesh government has no impact
Will it be implemented this time or anu noyification on postponing the same.
It is implemented from today.
I am a resident of Jammu and Kashmir and trade in commodities futures.Can you please give a rough idea of how much i am going to benefit by this?
Hp have stamp duty of
flat 50 rs on both buy and sell that mean if you buy delivery stock of 100 they deduct 150+ other charged and when you sell it at 160 they will give 160- 50 – other charges , what is hell is this zerodha,
The stamp duty is charged per contract note, not per trade.
Sir when this rule is in active mode of same stamp duty in all country
Check the banner at the very beginning of the post. Postponed to July 1.
I am a resident of Himachal Pradesh. My current Stamp duty charges are Rs 50/Day, Is Uniform Stamp duty will be helpful for me?
Is this effective from today?
Postponed to July 1
The new stamp duty will be into effect from 1st April? Or is it further being delayed?
Postponed to July 1,2020
https://economictimes.indiatimes.com/news/economy/policy/govt-extends-implementation-of-the-uniform-stamp-duty-for-capital-market-instruments-to-july-1/articleshow/74900870.cms
Its postponed to july 1st as per below news.
https://www.thestatesman.com/business/govt-defers-unified-stamp-duty-rates-securities-till-july-1-1502871899.htmlhttps://www.thestatesman.com/business/govt-defers-unified-stamp-duty-rates-securities-till-july-1-1502871899.html
It’s been postponed to July 1.
Current stamp duty of Himachal Pradesh is very high 50rs.
With new rates both buy and sell of cnc will be how much as per uniform duty and what will be charges for call,put
Please suggest else i will change address to punjab as my current residence is punjab.
I face the same issue having pan card linked to Himachal. You don’t need to change address to Punjab as Stamp duty will be made same for all states now and thereby it will be reduced for Himachal
Hi,
So this new stamp duty is not into effect until April 1?
Hi
Checked today my report I still see old rate my dp Id is DP0554
Thanks
Uniform stamp duty collection postponed to APRIL 1st 2020..
As mentioned at the top of this post, uniform stamp duty collection has been postponed to April 1, 2020.
I take back the comment, since it has already been stated that it would be available from 09th Jan. Thanks Zerodha.
Regards,
Sunder
With uniform Stamp duty across India, can you update the brokerage calculator to include Stamp Duty. If this is acceptable, what would be the plan (date) by which it would be available in Brokerage Calculator?
I am from rajasthan.please compare it with example
Stt is central governments’ cut.
Stamp duty is state governments’ cut.
Exchange charge is NSE/BSE’s cut.
So why in the hell they would reduce any of these charges.
Those states person who were enjoying reduced stamp duty now have to pay more.
Kindly introduce-
“Number of times SL will trail” in BO.
Can you give more details?
Example1—
Intraday equity BO for stock “A”
Buy “A” @1500
SL=5, target=40, TrailingSL=10,
number of times SL will trail=1
As “A” moves to 1510, SL will trail to 1505.
As “A” moves to 1520, SL will not trail(because it has already trailed “1” time as I have specified in my BO) and remains at 1505.
As “A” moves to 1530, SL will not trail and remains at 1505.
As “A” moves to 1540, target is achieved.
Example2—
Intraday equity BO for stock “A”
Buy “A” @1500
SL=5, target=40, TrailingSL=10,
number of times SL will trail=2
As “A” moves to 1510, SL will trail to 1505.
As “A” moves to 1520, SL will trail to 1515.
As “A” moves to 1530, SL will not trail(because it has already trailed “2” times as I have specified in my BO) and remains at 1515.
As “A” moves to 1540, target is achieved.
I can give more examples if needed.
Kindly introduce this simple but very useful thing in BO.
Ah, not sure what value that would add, since the SL only trails towards your target, so any number of trails would still be good for you.
Well, Reasons it would add immense value—
-I am sure you understand that stock movement is not linear. Stock fluctuates, hits SL and then resumes.
-Many times I would like my SL to trail only ONCE till cost price and not again.
-Too much trailing will increase the chances to hit SL.
-But it is crutial for me to trail SL till the cost price so that I don’t book unnecessary loss.
-With all due respect, by saying that SL is trailing in my direction, you are assuming that stock movement is linear ALL the way.
– In short, I am really waiting for this feature and I am confident that many traders would like it. Certainly this would add another feather in your cap.
Kindly introduce either of these-
1) Number of times SL will trail.
2) Stock price till which SL will trail and not beyond.
Please rest assured that this feature would add value. If you are still not sure, I can write an example about how this feature can make life easier.
You already got at least one user who would use this feature if it sees light of the day.
Example, how useful this can be—
Example2—
Intraday equity BO for stock “A”
Buy “A” @1500
SL=5, target=40, TrailingSL=10, NO FACILITY to trail SL only once.
As “A” moves to 1510, SL will trail to 1505.
As “A” moves to 1520, SL will trail to 1515.
“A” retraces to 1515, SL is hit.
“A” resumes upward journey to 1540.
On the other hand if the SL only trailed ONCE till 1505. Full profit would be achieved.
In short, I know what I am asking for.
Waiting for reply…
Edit- I mean “example” and not “example2”
STT must be reduced.
Ok
Abolish lTCG tax, and reduce stt charges in this budget.
Good
Yes agree with u.
Even i see other outside brokers are allowing partial qty to take as delivery for FNO position (e.g. SBI 1 Lot = 3000 qty) so you can take 1500 as well for delivery or Intraday…based on qty margin and span would be calculated.
So i find equity delivery to be expensive in Tamil Nadu. Now .015/ trade(buy and sell) previously it was .012/ trade (Buy and sell)
What are the charges for equity delivery? Above it says offline transfer, what does it mean?
It is the same as mentioned in the post, 0.015% on the buy side.
It’s already very less investors, traders in india. Gov should take appropriate action to improve Investments in stock market,by doing theese kind of charges we may lose fresh Investments or decrease Investments.
For me, stamp duty will shoot up 5 times. Earlier it was 0.003%, and now it will be 0.015%… Not a welcome move.
Various types of charges :
Brokerage , Exchange Transaction Charge , CGST , SGST , STT , SEBI Turnover fee , Stamp Duty , DP charges
should be simplified in one or two types.
Accounting years should also be calendar years.
What will be the effect in Rajasthan for delivery based equity ??
The current stamp duty rate in Rajasthan for delivery based trading is 0.012% on both the buy and sell side. After uniform stamp duty, it’ll be 0.015% only on the buy side.
Please provide comparison chart with example between old and new rates
Hey, a link to the old stamp duty rates of all states is provided in the post.
i agree thanks a lot ,its reailly good
if any chart explanation give better understanding thank you
Scalpers who were residing in states which had a cap on maximum stamp duty per day per contract note, will be negatively affected, as the Maximum Stamp Duty per day irrespective of number of trades feature is removed, eg Haryana had INR 200 per day Stamp Duty irrespective of number of trades. No Haryana trader who trades Futures , will pay INR 200 per crore, in such case Stamp Duty will shoot up easily.
People From TamilNadu will be More Happy. To buy 10 lots of NIFTY Futures I was Paying 1000 Rs as Stamp duty. Now its 183 Rs Only. I can save lot of money in Profits. Happy Trading.
As expected. Government is not going to compromise with their income.
Since intraday volume will be low now so their revenue will also be impacted. So now new thing introduced called Uniform Stamp Duty.
Other brokers charges also increase or not
This change affects all market participants.
Need more details.. I’m from TN. My stamp duty is already low..Now will it change?
Ours was 0.006% of turnover but now it’s 0.003% only on buy side.
So it will be less now.
You can find the current stamp duty rates in Tamil Nadu here. With uniform stamp duty, the rates for trades in equity intraday, F&O and currencies will be reduced by over 50%.
isn’t it more than 50%? wherein 0.006% was charged on both buy and sell-side. and now its 0.003% only on buy-side.
Assume my turnover is 100000, current stamp duty would be 6rs. considering 50000 as buy and sell value. NO MTM.
and post uniform stamp duty it will be on buy-side which is on 50000, and the stamp duty will be 1.5 rs, and in terms of % it will be 75%
Pls, correct me if I am wrong.
Thanks
The savings are more in this case. Most cases it is 50%. 🙂
STT and Exchange Transaction charges are the real headache for intraday traders. Govt. and SEBI respectively should reduce these charges by 50% at least.
I totally agree with you brother.
I’m interested
Reduce deposit charge
Mayur, are you talking about fund transfer charges here? If yes, there’s no charge if you add funds to your account using UPI. Alternatively, you can use NEFT/IMPS/RTGS as well for which you are not charged from our end. You refer to our support portal for more information on this.
Hope there would not be a big impact for Tamil Nadu.
Yes, there’s a considerable reduction in the stamp duty payable by traders in Tamil Nadu. The stamp duty for equity intraday, F&O, currencies, and commodities segment has reduced by over 50%.
What are the charges on sell-side?
Dei mental kena kudi..r u out of ur senses..read d article properly..it says no stamp duty on sell side.. illiterate idiot.. randomly ask some shitty questions though d answer is clearly visible
Hahahha mama sema punch……..:-)
@kuku…. What is the use of your education, which have not, taught you how to talk to people ( illiterate)
very well said
yes. no right to insult others. oversight happens. either answer the Q or stay quiet. Don’t abuse people. Respect the education your parents tried to give you.
Stamp duty won’t be charged on the sell-side for all market transfers. In case of off-market and OTC transactions where there’s a consideration, the stamp duty will be collected by the depositories from the transferor.
thanks a lot , its really good move , we are waiting for hedged position margin system then yuha
Need more detail.
Hey Ram, we’ve explained everything here in this post with links to the relevant circulars and gazette notifications. You can go through these notifications for all the information you need.
So, would this calculation be updated on zerodha brokerage calculator?
And, if yes then how soon??
Ask them to reduce STT.
I agree.
Gov. should reduce STT by 50% at-least.
They will give peanuts and advertise it as full day meal.
STT need to be reduced or finished.
Government should ban STT
For this STT should be Chinese.
Himachal pradesh still charge 50 rupees per day why rates are not changing for himachal
Read the banner on the top of the post, Rishav, this hasn’t gone live yet.
Its true and very frustrating
yeah better to trade on other platforms where we can trade on NYSE too
What platform in India can we trade NYSE on?
I want to know too. Been looking to trade on NYSE.
STT is really too much
STT is really too much.
Can our comment change STT rates ?