Calculation of Brokerage and Taxes in Indian share market
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In the following subsection we will explain how to calculate brokerage and taxes for trading and investing (delivery based trading) in Indian share market.

First up all let’s know the brokerage rates and taxes applicable for trading and investing in share market and then its calculation.

Please note - Brokerages rate are variable based on your broker. In our case we will take the brokerage rates as per our broker. If you want to take advantage of such low brokerage rates then please apply at Demat Account Opening

Suggestion is to adopt low brokerage rates with reliable service.
Brokerage and taxes calculation for Delivery Based Trades:
Brokerage Rs 20 Flat for buying and selling
Service Tax 15.00% (14.00% service tax, 0.50% swachh Bharat cess, 0.50% krishi kalyan cess) on brokerage
Securities Transaction Tax (STT) 0.1% of transaction value (Both Buy & Sell)
Stamp Duty 0.01% on turnover
SEBI Turnover Tax 0.0002% on turnover
Brokerage Rs 20 Flat for buying and selling
Service Tax 15.00% (14.00% service tax, 0.50% swachh Bharat cess, 0.50% krishi kalyan cess) on brokerage
Securities Transaction Tax (STT) 0.025% of transaction value (On Sell transaction)
Stamp Duty 0.002% on turnover
SEBI Turnover Tax 0.0002% on turnover
Brokerage and taxes calculation for Intraday trading
Brokerage and taxes calculation for FUTURES MARKET:
Non-Square Off (Carry Forward) Trades and Square-Off Trades:
Transactions Amount in Rs
Bought Tata motors - Qty -100 at Rs 400 40,000
Sold Tata motors - Qty 100 at Rs 450 45,000
Total Transaction value 85,000
Total Brokerage - Rs 20 for buying and selling 40
Stamped duty on Transaction value : 0.01% 8.5
Securities transaction tax on Transaction value: 0.1% 85
SEBI Turnover Tax: 0.0002% on Transaction 0.17
Service tax: 15% on brokerage 6
Total charges (including brokerage) 139.67
Gross Profit = Selling Rs 45000 -
Buying Rs 40000
5000
Net profit = Gross profit - total charges = 5000-139.67 4860.33
Brokerage Rs 20 Flat for buying and selling
Service Tax 15.00% (14.00% service tax, 0.50% swachh Bharat cess, 0.50% krishi kalyan cess) on brokerage
Securities Transaction Tax (STT) 0.01% of transaction value (On Sell transaction)
Stamp Duty 0.002% on turnover
SEBI Turnover Tax 0.0002% on turnover
Brokerage and taxes calculation for OPTION MARKET :
Brokerage Rs 20 Flat for buying and selling
Service Tax 15.00% (14.00% service tax, 0.50% swachh Bharat cess, 0.50% krishi kalyan cess) on brokerage
Securities Transaction Tax (STT) Sell : 0.017% on Premium on exercise : 0.125% on Settlement Price
Stamp Duty 0.002% on turnover
SEBI Turnover Tax 0.0002% on turnover
Example of calculation of Brokerage and taxes on Delivery based trading
Example of calculation of Brokerage and taxes in day trading (intraday trading)
Transactions Amount in Rs
Bought Tata motors - Qty -100 at Rs 400 40,000
Sold Tata motors - Qty 100 at Rs 405 40,500
Total Transaction value 80,500
Total Brokerage - Rs 20 for buying and selling 40
Stamped duty on Transaction value : 0.01% 16.1
Securities transaction tax on Transaction value: 0.1% 10.12
SEBI Turnover Tax: 0.0002% on Transaction 0.161
Service tax: 15% on brokerage 6
Total charges (including brokerage) 72.38
Gross Profit = Selling Rs 40500 -
Buying Rs 40000
500
Net profit = Gross profit - total charges = 500-72.38 427.61
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