What are stamp duty charges?

How stamp duty works

Stamp duty is a charge levied by the state government on the transfer of securities. Think of it like the stamp duty you pay when buying property — except here it applies to your stock and derivatives purchases.

Key things to know

• Stamp duty is charged only on buy orders. You will not see this charge when you sell.
• The rate varies by instrument type. For options contracts, the rate is 0.003% of the premium value.
• For equity delivery trades, the rate is 0.015% of the transaction value.
• For equity intraday and futures, the rate is 0.003% of the turnover.

Where can you see this charge?

Stamp duty is included in the charges breakdown shown on your contract note and in the Charges section of the Punch app. Since the amounts are usually very small, they may round off to a fraction of a rupee on individual trades.