Stamp Duty 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.

Zerodha brokerage structure overview

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

Overview

Zerodha operates a flat-fee brokerage model that departed from the percentage-of-turnover convention dominant among Indian brokers when the firm launched in 2010. Under this model, the brokerage component of a trade’s cost is either zero (for equity delivery) or capped at a flat Rs 20 per executed order across all other segments. The total amount debited from a client’s account, however, is substantially larger because several statutory levies – securities transaction tax, exchange transaction charges, GST, stamp duty, and the SEBI turnover fee – are collected on top of brokerage and remitted to the relevant governmental or regulatory authorities.