Indian Stamp Act on WebNotes

Stamp duty on mutual fund units

Tue, 12 May 2026 00:00:00 +0000

Stamp duty on mutual fund units is a statutory charge levied at the time of purchase or switch of mutual fund units in India, introduced by an amendment to the Indian Stamp Act, 1899 through the Finance Act, 2019 and made effective from 1 July 2020. The rate is 0.005 per cent of the investment amount on purchases and on the notional value of units on switches. Stamp duty reduces the number of units allotted to the investor and is credited to the state government of the investor’s registered address.

Stamp duty on securities transactions in India

Mon, 11 May 2026 00:00:00 +0000

Overview

Stamp duty on securities transactions in India is a state-level tax levied under the Indian Stamp Act 1899. Prior to 1 July 2020, stamp duty rates and collection mechanisms varied significantly across states, with some states levying duty on both sides of a transaction, creating a fragmented and often non-transparent cost for traders. The Finance Act 2019 amended the Indian Stamp Act 1899 and introduced a uniform national framework for stamp duty on exchange-traded securities, effective 1 July 2020.