How often do you trade in Stocks and Futures and Options? Do you know that besides the brokerage charges, you end up paying substantial amount by way of statutory charges especially if you are a short term trader or a trader in Intra-Day and Derivatives? If you check the Contract Notes issued by your stock broker, you will realize that the extra charges add up significantly to your expense side and thereby eat away your profits. If you are a long term trader, it hardly matters whether you know the extra charges that you have to pay to your broker in addition to the brokerage charges. However, for traders who trade in stocks and futures and options regularly, it makes sense to know the statutory charges payable on stock and derivative trading.

When you trade in the Indian Stock Markets, you have to pay different types of statutory charges such as ST (service tax), Education Cess, STT (Securities Transaction tax), Turnover Tax, Stamp Duty and Exchange Transaction Charges. You may wonder why you should know it, as ultimately, the charges are statutory and therefore, the same must be paid. Well, with the right information in hand, you can easily assess the quantum of profit or loss before taking the decision to enter or exit from a particular trading position. Besides, if you know the statutory charges, you can verify whether your broker is billing you the right charges.

Here is a list of Statutory Charges payable on Equity and Derivative Trading in India.

1. Service Tax: 10% on the brokerage amount

2. Education Cess: 3% on the Service Tax

3. Stamp Duty: The rate varies with the State. In Maharashtra, the present rate is 0.01% of Traded

Turnover for Delivery Trades and 0.002% for Cash and Margin Intra-Day Trades, and Futures and

Options

4. Securities Transaction Tax:

Cash - Delivery Segment: 0.125% of Traded Turnover; applicable on both Buy and Sell Side transactions
Cash - Non Delivery (Intra-Day Transactions) Segment: 0.025% of Traded Turnover; applicable only on Sell Side transaction
Futures Segment: 0.017% of Traded Turnover; applicable only on Sell Side transaction
Options Segment- when not exercised: 0.017 per cent on option premium; payable by the option seller
Options Segment- when exercised: 0.125 per cent on the settlement price of the option; payable by the purchaser

5. Exchange Transaction Charges:

Cash Segment: NSE - 0.0035% of Traded Turnover; BSE - 0.00348% of turnover
Futures Segment: 0.002% of Traded Turnover
Options Segment: 0.05% of Traded Turnover

6. SEBI Turnover Tax:

Cash Segment: 0.0002% of Traded Turnover
Futures Segment: 0.0002% of Traded Turnover
Options Segment: 0.0002% of Traded Turnover

In the End:

Different brokers adopt different systems. Some of the brokers include all the charges except Service Tax, Education Cess and STT (these three components need to be shown separately in the contract notes as per the statutory requirements) in the brokerage itself whereas some brokers bill everything separately to you. Therefore, please check with your broker before opening the trading account.

jumbo mortgage tagesgeld vergleich