Stamp duty calculation for options.
Stamp Duty is charged based on option turnover where turnover is (Premium Price * Lot size). When exchange calculates option turnover, they do it as ((Strike Price + Premium) * Lot Size) to show more turnover.
Even brokerages calculate options turnover similarly to generate brokerage. Stamp Duty is charged under the Indian Stamp Act for contracts shared with the customer in any format including paper or electronic. The amount charged varies from state to state and is charged based on the client’s correspondence address.
We don’t have any specific circulars which give complete clarity on how stamp duty is charged, but there’s a lot of information available online.
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