Annual Maintenance Charge (AMC) at Zerodha

Overview

Zerodha charges an Annual Maintenance Charge (AMC) of Rs 300 plus 18 percent GST (total Rs 354) per year for maintenance of the CDSL demat account linked to each trading account. The AMC covers the cost of account upkeep, record maintenance, and the services provided by Zerodha as a depository participant (DP) registered with CDSL. It is a recurring annual charge that is debited from the client’s trading ledger balance on a yearly cycle.

The AMC is separate from per-transaction charges such as the DP charge on sell transactions and does not vary based on the number of holdings, the value of the portfolio, or the frequency of trading. It is charged regardless of whether the demat account was active or dormant in the preceding year.

Charge structure

The first-year AMC exemption means that newly opened Zerodha accounts do not pay AMC for the first 12 months from account opening. From the second year onward, the Rs 354 annual charge is levied.

Billing cycle

The AMC billing cycle at Zerodha is linked to the account opening anniversary date, not to the financial year. An account opened in October 2023 would have its first AMC billed in October 2024 and annually thereafter. The Rs 354 is debited from the client’s Zerodha trading ledger. If the ledger balance is insufficient, the amount becomes a debit balance (negative ledger) that must be settled.

Zerodha sends advance notifications (email and app notification) before the AMC deduction date, giving clients time to ensure their ledger balance is adequate.

What the AMC covers

The AMC covers depository participant services, which include:

• Electronic maintenance of the client’s CDSL demat account records
• Processing of credits (shares received from IPO allotments, bonus shares, dividend reinvestments where applicable, transfers from other DPs)
• Issuance of Client Master Report (CMR) copies through the online portal (physical copies carry an additional charge)
• Access to the CDSL easiest portal and the Zerodha Console demat account interface
• Annual consolidated account statement provision

The AMC does not cover per-transaction DP charges, pledge charges, off-market transfer charges, or physical CMR request charges, all of which are billed separately.

CDSL vs NSDL

Zerodha operates exclusively as a DP under CDSL. Clients whose existing demat accounts are with NSDL (through other brokers or banks) who open a Zerodha account will receive a new CDSL demat account. Clients wishing to retain their NSDL demat account must use the off-market transfer process to move shares from NSDL to CDSL if they want those holdings visible in the Zerodha portfolio.

NSDL-based DPs charge AMCs that vary by DP; the structure is similar but rates differ. CDSL’s own AMC structure that it charges DPs (not clients directly) is separate from what Zerodha charges clients.

Comparison with other brokers

AMC charges across discount brokers in India as of mid-2026:

Some brokers waive the AMC as a competitive differentiator. Groww and 5Paisa absorb the CDSL DP cost and do not pass it to clients. Whether this represents a true cost advantage depends on how DP charges and other fees are structured.

Dormant accounts

If a client has not traded for a period and holds no securities, they still incur the AMC annually. A demat account with zero holdings that is inactive accumulates the AMC charge, creating a negative ledger balance. If this balance is not resolved, Zerodha may follow up with the client or, in cases of extended inactivity, may initiate the account closure procedure per SEBI guidelines.

Clients who do not intend to use their Zerodha account should formally close it to avoid recurring AMC charges. Account closure at Zerodha is free of charge.

Basic Services Demat Account (BSDA)

SEBI introduced the Basic Services Demat Account (BSDA) to provide a low-cost demat account for small retail investors. Under SEBI’s BSDA guidelines, clients with demat holdings of value not exceeding Rs 2,00,000 (subsequently revised) are eligible for reduced or nil AMC. Zerodha offers BSDA accounts to eligible clients, where the AMC structure is different from the standard account:

• Holdings up to Rs 50,000: No AMC
• Holdings between Rs 50,001 and Rs 2,00,000: Rs 100 AMC (plus GST)
• Holdings above Rs 2,00,000: Standard AMC applies (Rs 300 + GST)

BSDA is automatically applicable to eligible accounts; clients do not need to specifically request it. However, Zerodha determines eligibility based on the portfolio value at the time of annual AMC computation.

Account opening charges

The demat account opening at Zerodha is part of the overall account opening process, which carries a one-time charge of Rs 200 for equity account opening. This is separate from and in addition to the AMC. See account opening charges for details.

GST on AMC

The 18 percent GST on AMC follows the same principles as GST on other broking charges. Depository services are classified under GST as financial services (SAC 997152 or related code). The GST is collected by Zerodha as a DP and remitted to the government. Registered GST taxpayers with a valid GSTIN can provide their GSTIN to Zerodha to have their tax invoice issued under their GSTIN, allowing them to potentially claim input tax credit subject to applicable ITC rules.

See also

• Zerodha brokerage structure overview
• DP charges on Zerodha
• DDPI one-time charge
• Account opening charges
• CMR/CML physical request charges
• GST on broking charges
• Zerodha

References

1. SEBI (Depositories and Participants) Regulations 2018, Regulation 80 (charges)
2. SEBI Circular on Basic Services Demat Account – SEBI/HO/MRD/DP/CIR/P/2021/639
3. CDSL DP Schedule of Charges (FY 2025-26)
4. Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
5. CGST Act 2017, Section 9; GST Rate Notification 11/2017-CT (Rate)