Stamp duty
Also called: stamp duty on shares
A government duty on transferring securities, charged on share trades and collected through the exchange's clearing corporation.
Stamp duty on trades through a stock exchange is collected centrally by the clearing corporations. The rate is set by the government and depends on the type of transaction.
It is one of several small charges that appear on every contract note.
Example
If the rate were 0.015%, buying ₹50,000 of shares would carry ₹7.50 of stamp duty.
Learn more in these lessons
- Trading costs and taxes on sharesWhat charges and taxes do you pay when you buy and sell shares?
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