Calculate Brokerage rates and Taxes
Learn how to calculate brokerage and taxes
Let’s see how to calculate Brokerage and taxes for intraday trading and for delivery trading
The current maximum intraday brokerage offered is 0.05% for buying and 0.05% for selling
(we provide 0.03% for buying and 0.03% for selling, these rates can be reduced further if you do daily high volume trading)
Brokerage calculation for day trading (intraday trading)
Taxes
1. The service tax is of 10.36% only on brokerage. (Update Mar 09- The service tax is reduced to 10.30% including education cess )
2. The STT (Security Transaction Tax) is of 0.025% only selling amount.
3. The stamp duty on total turnover for a day which is 0.002%.
4. and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%
Please note - These all taxes will add up to very small amount at the end of the day compared to your profits.
One example is explained to understand how to calculate brokerage and taxes.
Example -
Suppose the shares of Kotak Bank has been bought at Rs.315, quantity - 100 so the amount comes to Rs.315 x 100 = Rs.31500.
Now let’s see how to calculate the brokerage and taxes.
Your buying amount
Rs.31500 (Rs.315x100 Qty shares)
Brokerage charge
0.03% as brokerage (It’s our brokerage rates) on 31,500 which comes to Rs.9.45
Service Tax
The service tax is 10.36% only on brokerage, so 10.36 % on Rs.9.45 comes to Rs 0.98.
Total charges you have pay on buying amount is
The total brokerage + service tax which come to Rs.9.45 + Rs.0.98 = Rs.10.43
Now let’s calculate the brokerage and taxes on selling amount
Your selling amount
Suppose you sold Kotak Bank shares at Rs.316, Qty - 100 so the amount comes to Rs.31,600 (Rs.316 x 100 Qty shares)
Brokerage charge
0.03% brokerage on 31600, comes to Rs.9.48
Service Tax
The service tax is 10.36% only on brokerage, so 10.36 % on Rs.9.48 comes to Rs 0.99.
STT(Service Transaction Tax) only on selling amount
The STT (Service Transaction Tax) is 0.025% on selling amount (the selling amount is 31,600) which comes to Rs.6.32.
Total charges you have pay on Selling amount is
Total brokerage + service tax + STT on selling amount is
= Rs.9.48 + Rs.0.99 + Rs.6.32
= Rs.16.79
Total amount you have to pay on buying and selling is
= Rs.10.43 (buying) + Rs.16.79 (selling)
= Rs.27.22
Also you have to pay stamp duty and regulatory charges on total turnover.
Your total turn over is calculated by adding the buying amount and selling amount.
Buying amount is 31500 and selling amount is 31600 which adds up to Rs. 61300
Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%
So on total turnover amount (Rs. 61300) the stamp duty and regulatory charges comes to Rs 3.8.
So the total amount you have to pay including brokerage and all taxes is only
Rs 27.22 + 3.8 = 31.02
Conclusion
So now the conclusion is you are paying Rs.31.02 while you earned the profit of Rs.100.
So your profit is Rs 100-31 = 69
So don’t you think more then 69% profit in single trade is quite enough to do thousands per day.
If you continue doing such small trades with such small profits then you will end up with big amount at the end of the day.
Please visit below link if you are interested to know how to add thousands in a day and earn minimum 30% returns in single month at below link, its free.
(give link of how much profit will you make in a month)
Let’s see how to calculate Brokerage charges for Delivery trading
For delivery trading the brokerage rates are 0.5% for buying and 0.5% for selling ( we charge 0.3% for buying and 0.3% for selling)
Remaining all taxes are same except STT (security transaction tax).
STT is not applicable for delivery based trading.
But in delivery trading DP charges are applicable when you sell shares from your demat account. (Charges are mentioned above)
Please note -
Information provided above is latest but if you find any discrepancies then please let us know and we will provide further details on same.
If you are interested to know how to earn minimum 30% profit in a month then please visit at below link. It's free.
Small profits and multiple trades
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