How tax are calculated on stock market


How service tax,security transaction tax,stamp duty are calculated on stock market?

Today in a discussion board one of my friend said that he opened a demat and a trading account with a broker.I asked him,about charges.He said that ,brokerage is only for inter day 3 paisa and delivery 30 paisa plus tax 1 paisa and 10 paisa.
For future brokerage is .03% plus tax is .01%.And for option brokerage is calculated on premium like( lot size(strick price+premium))*.03% plus tax is like that (lot size(strick price+premium))*.01%.
I asked him how service tax and security transaction is calculated?He can not reply.
Many of us dont know how service tax,security transaction ,stamp duty are calculated.
List is given below.
1)Service tax :-- It is calculated on brokerage.Suppose your brokerage is rs 100,service tax will be ( brokerage *10.20%).
Security transaction tax:--There are so different slab in security transaction tax given below

for cash market inter day
purchase - Nill
Sell - .025%
For cash delivery
Purchase - .0125%
sell - .0125%
For future:--
Purchase - Nill
Sell - .017%
For option :--
Purchase - .125% settlement price on excise
Sell - .017% on premium.


Stamp duty may be different for different states,Its like rs 1.10 / 10000 rs transaction for Maharashtra government.Its near rs 1 for different state.
So always aware about taxes for stock market.


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Comments

Author: Naduvilmadam02 Oct 2010 Member Level: Silver   Points : 1

Hi Das, There is a small correction it is not inter day it is intra-day that is day trade you purchase or sell and square up your position at the end of the day This may be sale without having securities which is known as "naked sale" or purchase without the intention of taking delivery. In intra day transactions, charges are for either for purchase or sale it cannot be both.



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