Stamp duty is a tax levied by the government on the purchase of securities. On Angel One, stamp duty is charged only on the buy side of the transaction. The rates vary depending on the type of trade:

• Equity Delivery: 0.015% (₹1500 per crore) on the buy side.
• Equity Intraday: 0.003% (₹300 per crore) on the buy side.
• Equity Futures: 0.002% (₹200 per crore) on the buy side.
• Equity Options: 0.003% (₹300 per crore) on the buy side.
• Currency Futures: 0.0001% (₹10 per crore) on the buy side.
• Currency Options: 0.003% on the premium value.
• Commodity Futures: 0.002% (₹200 per crore) on the buy side.
• Commodity Options: 0.003% (₹300 per crore) on the buy side.

Why Are Stamp Duty Charges Applicable?

Stamp duty is a statutory charge imposed by the government under the Indian Stamp Act, 1899. It is collected by the state governments and is applicable to the purchase of securities. The rates are uniform across India and are determined by the government. These charges are mandatory and are included in the contract note provided by Angel One after each trade.

How Are Stamp Duty Charges Calculated?

Stamp duty charges are calculated based on the transaction value of the securities purchased. For example, if you buy ₹1 crore worth of equity delivery stocks, the stamp duty at 0.015% would be ₹1500. Similarly, for ₹1 crore worth of equity intraday stocks, the stamp duty at 0.003% would be ₹300. These charges are automatically calculated and added to your total transaction cost by Angel One.

Are Stamp Duty Charges the Same Across All Brokers?

Yes, stamp duty charges are standardized across all brokers in India as they are mandated by the government. The rates are uniform and do not vary between brokers. However, brokers may have different brokerage plans, transaction charges, and other fees, which can affect the overall cost of trading.

How Can You Minimize Stamp Duty Charges?

Since stamp duty is a statutory charge and is applicable on the buy side of the transaction, there is no direct way to minimize these charges. However, you can optimize your trading strategy by considering factors like transaction volume, holding period, and the type of securities you invest in. Long-term investments may help in reducing the frequency of transactions, thereby lowering the cumulative stamp duty costs.