What is Stamp Duty?
It is a direct tax collected by State Governments under Section 3 of the Indian Stamp Act, 1899. It is levied on documents with financial transactions, it includes property transactions, bills of exchange, promissory notes, letters of credit etc. A Stamp Duty paid document is considered a legal document which can be presented as evidence in court of law.
What is Unified Stamp Duty / One Stamp Duty?
The Finance Bill, 2019, contain certain amendments in the Indian Stamp Act, 1899 (the Act) brings uniformity in the levy of stamp duty on securities market.
Till 31st March 2020, stamp duty will be charged at different rates based on your State of residence. But, with effect from 01st April 2020, stamp duty will be charged uniformly irrespective of the State of residence.
The collection of Stamp Duty is also revised, Till 31st March 2020, we (Brokers) will collect it from you and pay it directly to the respective State Governments but effective 01st April 2020, we (Brokers) will collect it from you on behalf of stock exchange, who in return will pay it to the respective State Governments
Till 31st March 2020, stamp duty will be charged at different rates based on your State of residence. But, with effect from 01st April 2020, stamp duty will be charged uniformly irrespective of the State of residence.
The collection of Stamp Duty is also revised, Till 31st March 2020, we (Brokers) will collect it from you and pay it directly to the respective State Governments but effective 01st April 2020, we (Brokers) will collect it from you on behalf of stock exchange, who in return will pay it to the respective State Governments
Note: As per Government Notification (CG-DL-E-30032020-218954) dated 30th March 2020, the implementation of Unified Stamp Duty is effective 01st of July 2020
Old Rates:
Find the list of state-wise stamp duties
New Rates:
| Type of Trade | New Stamp Duty Rates For Buyers |
|---|---|
| Delivery equity trades | 0.015% |
| Intraday equity trades | 0.003% |
| Futures (Equity and Commodity) | 0.002% |
| Options (Equity and Commodity) | 0.003% |
| Currency | 0.0001% |
| Mutual funds | 0.005% |
Other Changes:
- Till 31st March 2020, the stamp duty is applicable on both buyers and sellers but effective 01st April 2020 only buyers are obligated to pay it.
- Reduction in cost of trade as the rates for Currency and Interest Rate Derivatives have been slashed from Rs. 200 per crore to Rs. 10 per crore.
- No waiver of stamp duty on transfer of securities and mutual fund units in dematerialized form.
- Stamp duty will be levied on off market transfers done via DIS (Delivery Instruction Slip), it will be applicable based on the consideration amount entered on the DIS slip. Please note, stamp duty has to be paid in advance i.e. before execution of DIS.
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