I made a profit of ₹2,00,000 yesterday but received only ₹19,516.47. I was shocked to see this because my broker, Zerodha, is a zero-brokerage platform. On checking further, I found that there are multiple other trading charges that are charged per trade, other than the brokerage ones. Let me explain this with the trade I did yesterday.
So, I bought 200 quantities of stock at ₹1000 the day before yesterday. As the market was kind, my target got hit within less than 48 hours and I sold them at ₹1100 per share.
My overall trading charges were:
|STT Total||₹ 420|
|Exchange txn. charge||₹ 14.5|
|DP charge||₹ 15.93|
|SEBI charges||₹ 0.5|
|Stamp duty||₹ 30|
|Total taxes||₹ 483.53|
What are STT charges?
- STT stands for Securities/Commodities Transaction Tax.
- This is charged by the government as above on both buying and selling when trading in the cash market.
- STT is charged only on the sell-side in case of intraday or F&O.
- STT/CT charges can be more than the brokerage charges in the case of zero-brokerage brokers.
What are Exchange Transaction charges?
- These are charged by exchanges like NSE, BSE, and others.
What are SEBI charges?
- These are charged at ₹10 per crore + GST.
- They are charged by SEBI for the regulation of markets.
What are Stamp charges?
- These are again charged by the Government of India as per the Indian Stamp Act of 1899 for trading on the stock exchanges.
What are DP charges?
- These are also called Depository Participant charges.
- It is fixed at ₹13.5 + GST and is debited when shares are sold from your account.
- Depository participants like CDSL and NSDL charge this amount.
There are a few other charges that one needs to pay on a specified duration of time like AMC (Account Maintenance Charges), payment gateway charges, delayed payment charges, and others.
So, always consider all these charges while calculating your profits, and remember that your net realized profits are inclusive of all these charges.
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