Stamp Duty Rate Changes

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With the recent changes in stamp duty, all transactions done on stock exchanges will have the unified Stamp Duty rates across the country. From April 1st, 2020, stock exchanges will collect the stamp duty for trading stocks and commodities on exchanges and depositories will collect for any off-market transactions at a unified rate and deposit the proceeds with the central government, which in turn will divide it among 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. The new stamp duty would be charged only on the buy-side of the transaction. Earlier it was charged on both buy and sell trades.

Stamp duty is charged per contract note and based on traded volume. Previously, brokers used to collect stamp duty from clients at different rates based on the client's resident state and pay to the respective state governments. But going forward, unified stamp duty across all the states of India will be collected by the broker to pay it to the exchange.

New Stamp Duty Rates on trading

  • Equity Delivery – 0.015% or 1500 Rs per Cr (only on buy side)
  • Equity Intraday - 0.003% or 300 Rs per Cr (only on buy side)
  • Equity Futures – 0.002% or 200 Rs per Cr(only on buy side)
  • Equity Options – 0.003% or 300 Rs per Cr (only on buy side)
  • Commodity Futures – 0.002% or 200 Rs per Cr (only on buy side)
  • Commodity Options – 0.003% or 300 Rs per Cr (only on buy side)
  • Currency – 0.0001% or 10 Rs per Cr (only on buy side)

Stamp Duty Rates on Off-Market Transactions

  • Transfer and re-issue of Debentures– Rs 10 per Cr
  • Transfer of securities on delivery basis (other than debenture)– Rs1500 per Cr
  • Transfer of security on non delivery basis (other than debenture)– Rs 300 per Cr

Advantages of Unified Stamp Duty

  • Only buyer need to pay stamp duty, the seller need not to pay stamp duty.
  • Currency and interest rate derivatives stamp duty is reduced from from Rs 200 / crore to Rs 10 / crore.
  • Brokers job gets simplified as calculation of stamp duty rates is easy and unified.
  • Unified Stamp Duty is collected from all the States of India

State-vise analysis on Unified Stamp Duty

  • Currency Derivatives – Decrease in all the states and UT.
  • Delivery Trades - Increase in all the states.
  • List of States where Intraday, Equity & Commodity Futures, and Option stamp duties will slash with the existing stamp duties rates are Chhattisgarh, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, West Bengal.
  • List of States where Intraday, Equity & Commodity Futures and Option stamp duties will increase with the existing stamp duties rates are Andhra Pradesh, Arunachal Pradesh, Assam, Delhi, Gujarat, Goa, Himachal Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Meghalaya, Orissa, Punjab, Rajasthan, Telangana.

Last updated on 7th Feb 2020

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User Comments

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1. Raj Nahar  2/7/2020 11:46:36 AM Reply
Great article, I am from Rajasthan. In this new changes in stamp duty, I need to pay extra for trading in Intraday. Which is not fair.






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