What is Stamp Duty and Who Pays It?

Know About Stamp Duty Collection In NSDL Demat Account

Stamp duty is the tax imposed by the Indian government on financial instruments under the Indian Stamp Act, 1899. It is mandatory for various transactions involving securities, ensuring legal validity in the depository system.

• How is stamp duty calculated? 
  Stamp duty is calculated based on the consideration amount declared by the transferring demat account holder in the instruction slip and captured in the NSDL system by the DP.
• Who pays the stamp duty? 
  In case of off-market transactions, the transferor pays the stamp duty. In case of pledge invocation, the pledgee pays it and In case of allotment of securities Issuer pays the stamp duty.
• When is the stamp duty paid?
  Stamp duty needs to be paid prior to the execution of instructions in the depository system.

NSDL Stamp Duty Calculator

You can use the NSDL stamp duty calculator to estimate the applicable stamp duty amount and make the payment online.

Note: The calculator is only to enables quick and easy access to calculate estimated stamp duty and does not purport to give correct stamp duty calculation in all circumstances. It is advised that for payment of stamp duty, the exact calculation may be made as per the provisions contained in the relevant Acts, Rules, etc. NSDL shall not be held responsible for any kinds of claims, losses arising out of the use of the calculated stamp duty.