Understanding Indian Stock Market Trading Charges
When trading in the Indian stock market (NSE & BSE), your overall profit is heavily influenced by statutory taxes and exchange fees alongside broker commissions. Whether you trade Equity Delivery, Intraday, Futures, or Options, calculating breakeven points in advance is essential for disciplined risk management.
Statutory Charges Breakdown
- STT (Securities Transaction Tax): Charged by the central government. Differs across delivery (0.1% buy & sell), intraday (0.025% sell only), and options (0.0625% on sell premium).
- Exchange Turnover Fee: Levied by NSE/BSE to maintain exchange infrastructure and transaction processing.
- Stamp Duty: Charged on the buy side turnover as per Indian Stamp Act regulations.
Regulatory & Tax Components
- SEBI Turnover Fee: Nominal fee of Rs 10 per crore charged across all market transactions.
- GST (18%): Applicable on the sum of Brokerage charges and Exchange Turnover fees.
- DP Charges: Flat depository charge (~Rs 13.5 + GST) applicable only when selling equity delivery holdings.