English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

1 answers

Equity - COSTS OF INVESTING IN EQUITY

Brokerage charges

When you open a broking account with a broker, you are charged a nominal one-time fee. In addition, for every transaction undertaken, your broker will levy a broking fee. Presently, these range between 0.25 per cent and 0.85 per cent for delivery trades and between 0.03 per cent and 0.25 per cent for non-delivery based trades.
(Source : http://www.reliancemoney.com/KB/Story.aspx?ArticleID=587c1d6c-d7f5-4c47-8dc2-8d72bb960d9c )

Payment of Securities Transaction Tax (STT)


Investing in equity involves paying of Securities Transaction Tax (STT) while buying as well as selling shares. This is an indirect form of tax levied by the Government. Indicated below are the STT rates applicable:

STT rate applicable while buying shares for delivery
0.125%

STT rate applicable while selling shares for delivery
0.125%

STT rate applicable while trading in shares
0.025%



Let’s understand the applicability of STT with an example. For instance, if you buy 100 shares of Company ABC to take delivery at Rs 100 per share, your cost is Rs 10,000 (100 shares x Rs 100 per share). You will have to pay STT of Rs 12.50 (Rs 10,000 x 0.125 per cent) at the time of purchase. If you sell these shares at Rs 200 per share, your total sale will be Rs 20,000 (200 shares x Rs 200 per share. You will again have to pay STT of Rs 25 (Rs 20,000 x 0.125 per cent).

If you undertake trading on 100 shares of Company ABC, you will have to pay STT at the rate of 0.025 per cent on your buy or sell value, whichever is higher. For instance, if your buy value is Rs 10,000 and your sell value is Rs 15,000, STT of Rs 3.75 will be payable on the sell value (Rs 15,000 x 0.025 per cent).

(Source : http://www.reliancemoney.com/KB/Story.aspx?ArticleID=d182f3e2-38d1-4b8d-acab-4d8e2bf8388b )

Theabove are charges for equity. For charges on following :
Equity Derivatives Mutual Fund Insurance Commodities Forex IPO
please refer to
http://www.reliancemoney.com/KB/

2006-10-23 20:43:55 · answer #1 · answered by PK LAMBA 6 · 1 0

fedest.com, questions and answers