Stamp Duty Equal For All States from Jan 9th, 2020

Coming Thursday, Jan 9th, 2020 Stamp duty will be charged equally regardless of the state of residence. Prior to this, stamp duty was charged at different rates depending up on your resident state. All brokerage firms used to collect it from thier clients and pay it monthly to the respective state government.

However, From January 9,2020 brokers will collect stamp duties and pay directly to the exchanges. The exchange than give it back to the central government, which in turn will divide it among the states. Earlier, every contract note requires to be stamped as per regulations of the respective state government.

Union Budget 2019-20, stamp duty was made uniform across all states. For reference Check Page 14 on the finance bill. You can also check the links to the circulars from various exchanges: Equity, Futures & Options, Currency, Offer for Sale, Offer for Takeover/Delisting/Buy-back, and Commodity.

Stamp Duty Example:

Stamp Duty Example

Stamp Duty Equal For All States from Jan 9th, 2020

As you can see in the image above, the charges of stamp duty were different for most of the states. But going forward this will be equal for all states. Few States like Telangana, Haryana, had a maximum cap per contract note on the stamp duty. Which means the charges would be maximum per contract were capped in a range.

Investors from states such as Tamil Nadu and Rajasthan will see a fall in their stamp duty , while investors from Haryana, Telangana, Uttar Pradesh, Odisha and Assam will end up paying higher stamp duties. For states such as Gujarat, West Bengal and Kerala it will remain unchange.

Those traders who were residing in these states which had a cap on maximum stamp duty per day per contract note, will be most hurt. As they will not enjoy the benefit of the cap going forward.

Old Rates:

You can check the charges you were charged untill now below. Most states were charging in the range of Rs 200 to Rs 300 per crore for intraday/derivatives and Rs 1000 per crore for equity delivery trades.

Stamp Charges (Not charged in case of future settlement, charged on premium value in case of options settlement)

State EQ Intraday EQ Delivery FUTURES OPTIONS Currencies Commodites
KARNATKA 0.003 0.003 0.003 0.003 0.003 0.003
GOA,DAMAN & DIU 0.005 0.005 0.005 0.005 0.005 0.005
ANDHRA PRADESH 0.005/Max 50 0.005/Max 50 0.005/Max 50 0.005/Max 50 0.005/Max 50 0.005/Max 50
ASSAM 0.018/ Max 49.5 0.018/ Max 49.5 0.018/ Max 49.5 0.018/ Max 49.5 0.018/ Max 49.5 0.018/ Max 49.5
KERALA,GUJARAT,
MAHARASHTRA,DELHI
0.002 0.01 0.002 0.002 0.002 0.001
HARYANA 0.002/ Max 200 0.01/ Max 500 0.002/ Max 200 0.002/ Max 200 0.002/ Max 200 0.001/ Max 500
HIMACHAL PRADESH Flat 50 Flat 50 Flat 50 Flat 50 Flat 50 Flat 50
MADHYA PRADESH 0.002 0.01 0.002 0.002 0.002 0.002
ODISHA 0.005/ Max 50 0.005/ Max 50 0.005/ Max 50 0.005/ Max 50 0.005/ Max 50 0.005/ Max 50
TELANGANA 0.01/ Max 100 0.01/ Max 100 0.01/ Max 100 0.01/ Max 100 0.01/ Max 100 0.01/ Max 100
UTTAR PRADESH 0.002/ Max 1000 0.002/ Max 1000 0.002/ Max 1000 0.002/ Max 1000 0.002/ Max 1000 0.002/ Max 1000
RAJASTHAN 0.003 0.012 0.0012 0.0024 0.0012 Non Argi – 0.0012
/ Agri 0.0006
TAMIL NADU 0.006 0.006 0.006 0.006 0.006
WEST BENGAL 0.002 0.01 0.002 0.002 0.0002 0.002
JAMMU & KASHMIR 0.01 0.01 0.01 0.01 0.01 0.01
State Symbol Absolute
TAMIL NADU GOLD
SILVERM
0.5
GOLDGUINEA 0.004
GOLDM 0.05
GOLDPETAL
GOLDPTLDEL
0.0005
SILVER 3
SILVER1000
SILVERMIC
0.1
CARDAMOM
CPO
MENTHAOIL
0.00004

New Stamp Duty Rates:

Type of trade New stamp duty rate
Delivery equity trades (offline transfers) 0.015% or Rs 1500 per crore on buy-side
Intraday equity trades 0.003% or Rs 300 per crore on buy-side
Futures (equity and commodity) 0.002% or Rs 200 per crore on buy-side
Options (equity and commodity) 0.003% or Rs 300 per crore on buy-side
Currency 0.0001% or Rs 10 per crore on buy-side

Old Rate Vs New Rate:

One of the major difference in old versus new stamp duty rates are applicable only on the buy-side and not on both buy and sell-side. Therefore stamp duty costs for most of the traders will get reduce by more than 50%.  Also, till now there was no stamp duty charged for offline transfer of shares using DIS (delivery instruction slip). However from now the charges will be based on the amount entered on the DIS slip. This will also end the tax advantage that brokerages and investors have been getting for routing their trade through some states with cheaper stamp duty.

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