How to calculate brokerage and taxes in Intraday trading
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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 Intraday trading
| 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 FUTURES DERIVATIVE 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) |
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 in 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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