Stamp duty

Stamp duty is a tax on the purchase side of a share trade. Since July 2020 one rate applies across India: 0.015% of the buy value for delivery trades and 0.003% for intraday trades. The exchange collects it through your broker, and there is none on the sale.

Before 2020 each state set its own stamp duty on share trades. The Indian Stamp Act amendment made the rate uniform and moved collection to the exchanges and depositories.

Example. A ₹1 lakh delivery purchase pays ₹15 of stamp duty. A ₹1 lakh intraday purchase pays ₹3.