How buying and selling prices are cut up throughout govt taxes, brokerage?

Trading exercise has as soon as once more picked up on the inventory exchanges. The variety of new demat accounts hit a 13-month excessive in June after 2.36 million new accounts have been opened final month, taking the full tally to 120.5 million. This renewed investor curiosity comes within the wake of a run-up within the inventory markets, which have reached new highs.

Apart from brokerages, the federal government additionally advantages when inventory markets see vast investor and dealer curiosity.

According to estimates by Fisdom, the central authorities is estimated to gather round ₹25,113 crore in securities transaction tax (STT) alone in FY23.

Brokerage is estimated at ₹29,000 crore, and trade transaction expenses of ₹10,334 crore . The items and providers tax (GST), which is eighteen% for monetary providers, is estimated to be ₹4,776 crore.

A majority of the STT collections come from the futures and choices (F&O) section, which accounts for a big chunk of the inventory market volumes.

If the buying and selling volumes stay the best way they have been in FY23, the STT collections may even be greater in FY24 as the federal government has elevated the STT expenses.

The authorities hiked the STT charged on choices from 0.05% to 0.0625%. Earlier, STT on turnover of ₹1 crore was ₹5,000. After the revision, this elevated by 25% to ₹6,250.

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The STT on futures was hiked from 0.01% to 0.0125%. This was earlier ₹1,000 on a turnover of ₹1 crore, which was elevated by 25% to ₹1,250.

The depository participant (DP) expenses, estimated from buying and selling exercise on the National Stock Exchange (NSE) for FY23, involves ₹2,840 crore.

DP expenses are what the brokerages have to pay to depositories— National Securities Depository (NSDL) or Central Depository Services (CDSL)— the place buyers’ securities are held.

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Updated: 17 Jul 2023, 12:32 AM IST