Explain for Options and Futures separately.
The rate of Stamp Duty in Karnataka for Equity and Commodities has been revised to 0.003% of the total turnover effective from April 1st, 2017.
There is no upper cap on the new Stamp Duty charge. Prior to April 1st, 2017, it was 0.01% of the total turnover to a maximum of Rs.50.
Effect of change in Stamp Duty on -
Total Turnover for Options trading for calculation of Stamp Duty is the premium turnover, where premium turnover = Option premium * Quantity
Let’s take an example where 5 lots(5*75) of Nifty 9200 CE were bought at 130 and sold at 140.
The Option turnover = Premium Turnover = 575(140+130) = Rs.1,01,250
New Stamp Duty = 0.003% of Rs.1,01,250 = Rs.3.04
Old Stamp Duty = 0.01% of Rs.1,01,250 = Rs.10.13
The new Stamp Duty for options will be 1/3rd of the old Stamp Duty and will always be lesser than the old Stamp Duty value as long as the new value is below Rs.50.
Total Turnover for Futures trading for calculation of Stamp Duty is (Futures Price * Quantity)
Let’ss take an example where 5 lots of Nifty Futures were bought at 9260 and sold at 9280.
The Futures turnover = 575(9260+9280) = Rs.69,52,500
New Stamp Duty = 0.003% of Rs.69,52,500 = Rs.208.58
Old Stamp Duty = Rs.50 max
This change in Stamp Duty has increased the Stamp Duty charges for Futures Trading due to the removal of an Upper Cap on the new Stamp Duty.
This is the link for MCX Circular reflecting the Stamp Duty changes.
Govt of Karnataka notification.
Has the stamp duty been changed for any other state this year?
For many years Karnataka was under 50 or 100 max per day cap i guess… however April 2017 dealt big blow to traders here… Has the stamp duty rate been changed in todays budget in Karnataka ? any update please.
As you said the stamp duty used to be 0.01% or maximum of ₹50 per day earlier. Last year this this was changed during the state budget to 0.003% with no upper cap per day.