Contract Note and Trading Charges in India: Brokerage, STT, Stamp Duty, GST and DP Charges Explained

Trading charges in India are made up of several small items, and together they decide how much of your profit you actually keep. Many beginners look only at brokerage, but the contract note shows a longer list of taxes and fees.

This guide explains each charge, the current STT rates after the Budget 2026 changes and how to read a sample cost breakdown.

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What Is a Contract Note?

A contract note is the legal confirmation of every trade you make on a day. It shows the trade time, price, quantity, brokerage and all statutory charges. Brokers send it by email at the end of the trading day, and it is the document to check when a net amount looks different from what you expected.

Brokerage and Platform Charges

Brokerage is the fee your broker charges for executing the trade. It may be a flat fee per order, a percentage of turnover or free for delivery trades, depending on the plan. Some brokers also charge a platform or account fee. Compare brokerage charges across segments, because intraday and derivatives often follow different pricing.

Securities Transaction Tax (STT)

STT is a tax levied on trades on recognised exchanges. It is charged whether you make a profit or a loss. The table below shows the main rates, including the changes that took effect on 1 April 2026.

Transaction	STT rate	Paid by
Equity delivery, buy	0.1%	Buyer
Equity delivery, sell	0.1%	Seller
Equity intraday, sell	0.025%	Seller
Equity futures, sell (from 1 April 2026)	0.05%	Seller
Options, sell on premium (from 1 April 2026)	0.15%	Seller
Options, exercised (from 1 April 2026)	0.15%	Buyer

The Budget 2026 changes raised STT only on derivatives. Delivery and intraday equity STT rates stayed the same. For active futures and options traders, the higher STT is a meaningful addition to trading costs.

Remember that STT is part of your trading charges whether the trade makes money or loses it, so a losing trade costs more than its loss alone. Since the charges on a trade are fixed by rule, the cost of trading is predictable, and you can estimate it before you place an order.

Exchange Transaction Charges and SEBI Turnover Fee

Exchanges charge a small fee on the turnover of every trade, and SEBI collects a turnover fee as well. These amounts are tiny per trade, but they add up for frequent traders. They are calculated on trade value and shown separately on the contract note.

Exchange transaction charges and the SEBI fee are the smallest trading charges on the contract note, yet they appear on every order. Over a month of active trading, these small charges on a trade can add up to a visible amount.

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Stamp Duty, GST and DP Charges

• Stamp duty is collected on the buy side. The rate differs for delivery, intraday and derivatives.
• GST of 18% applies to brokerage and to exchange transaction and SEBI charges, but not to STT.
• DP charges are a flat fee levied by the depository participant when you sell shares from your demat account, so they apply to delivery sales.

DP charges are charged per company sold per day, no matter how many shares you sell. Selling ten shares and selling ten thousand shares of the same stock on the same day incur the same flat fee, so small sales feel expensive in percentage terms.

A Simple Example of Trading Charges in India

Suppose you buy and sell shares worth Rs 50,000 for delivery. The buy side carries 0.1% STT, which is Rs 50, and the sell side carries the same. Stamp duty applies on the buy. Add brokerage, exchange charges, GST and a DP fee on the sell. Together these can take a noticeable bite from a small gain, which is why very small trades often struggle to break even.

Run the same trade as an intraday trade and the STT falls to 0.025% on the sell side, but brokerage may be higher and you may be trading more often. Compare total cost per round trip and not only one line item.

Trading costs eat into net profit in ways that beginners rarely notice. On an intraday trade that you square off within minutes, the trading charges on the STT line are small, but brokerage charges and exchange transaction charges repeat on every order. A trader who squares off ten times a day pays the cost of trading ten times, so the charges on a trade matter more as frequency rises.

How to Reduce Trading Charges Legally

• Trade less often, because each trade carries its own set of charges.
• Choose a plan that matches your style, whether you trade delivery or intraday.
• Avoid tiny orders where a flat fee makes up a big share of the trade value.
• Check the contract note against your broker's published charges every month.
• Remember that a rising or falling Bank Nifty does not change statutory charges, so plan around fixed costs before you chase moves.

Check your trading costs every month, not only when a trade goes wrong. Add up the trading charges from the contract notes, compare them with gross profit and see how much of the cost of trading comes from brokerage charges and how much is fixed by law. If trading charges eat more than a third of your gross gain, the strategy needs rethinking.

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Conclusion

Trading charges in India include brokerage and a set of statutory items: STT, exchange fees, SEBI turnover fee, stamp duty, GST and DP charges. Since 1 April 2026, STT on futures and options is higher, while delivery and intraday equity rates are unchanged.

Read your contract note regularly and treat total cost as part of every trade plan.

Frequently Asked Questions

What is STT and who pays it?

Ans. Securities transaction tax is a tax on trades on recognised exchanges. For equity delivery, both buyer and seller pay 0.1%. For intraday, the seller pays 0.025%. It applies whether the trade makes a profit or a loss.

What are the new STT rates on futures and options?

Ans. From 1 April 2026, STT on futures is 0.05% on the sell side, and STT on options is 0.15% on the premium when sold or on the settlement price when exercised. Delivery and intraday equity rates were not changed.

Why is GST charged on trading?

Ans. GST of 18% applies to brokerage and to exchange and SEBI fees, because these are services. It is not charged on STT or stamp duty. The amount appears as a separate line on the contract note.

What are DP charges?

Ans. DP charges are a flat fee charged by the depository participant when you sell shares from your demat account. They apply to delivery sales, are charged per company sold per day and vary by broker.

Do I pay stamp duty on every trade?

Ans. Stamp duty is collected on the buy side. The rate depends on whether the trade is delivery, intraday or derivatives, and it is set by the government and the same across brokers.

How can I check whether my broker charged me correctly?

Ans. Download the contract note and compare each line with your broker's published schedule of charges. Statutory items such as STT and stamp duty follow fixed rates, so any difference there deserves a question to the broker.

Are brokerage charges the same for intraday and delivery?

Ans. Not always. Many brokers charge differently across delivery, intraday and derivatives, and some offer free delivery trades. Check the plan details for each segment before choosing one.