TAXES RELATED TO INVESTING AND CHARGES ( WITH GST)...... ~ INVESTMENT School

TO UNDERSTAND THE TAXES WHICH WE PAY FOR INVESTING THE MONEY OR CHARGES IN STOCK MARKET OR BUSINESS THEN WE MUST HAVE TO KNOW ABOUT THE INTRADAY AND DELIVERY

SO SIR......................

IF YOU BUY STOCKS AND SELL IT ON THAT DAY THEN THIS TYPE OF TRADING IS KNOWN AS INTRADAY TRADING...........

IF YOU BUY A STOCKS AND SELL IT AFTER ONE DAY OR AFTER SOME TIMES MEANS MORE THEN ONE DAY NOT THE DAY OF BUY THE STOCKS THEN THIS TYPE OF TRADING IS KNOW AS DELIVERY TRADING................

THERE ARE DIFFERENT TRADING CHARGES FOR DIFFERENT TYPE OF TRADING,

MEANS SOME BROKERAGE FIRMS CHARGE 0.1% TO 1% AS A BROKERAGE CHARGE, AND HAVE TO GIVE 0.1% TO 0.01% AS A BROKERAGE CHARGE,
YOU HAVE TO GIVE ALL THE CHARGE PER TRADE MEANS WHEN YOU BUY THEN ALSO AND WHEN YOU SELL THAT STOCK THEN ALSO,

FOR EXAMPLE---------- LET SOME BROKERAGE COMPANY CHARGE 0.01% AS A BROKERAGE CHARGE PER TRADE, MEANS YOU HAVE TO PAY 1 PAISE PER 100 RUPEE TRADE, (0.01% * 100), SO YOU GIVE 1 PAISE FOR BUY A TRADE AND AGAIN 1 PAISE TO SELL THAT STOCK............

SIMILARLY YOU PAY TWO TIMES FOR A TRADING IN STOCK BUT YOU PAY LITTLE MORE MONEY IN DELIVERY TRADE AND PAY LITTLE LESS FOR INTRADAY TRADE.

WITH THIS BROKERAGE CHARGE YOU HAVE TO PAY SOME MORE CHARGES WHICH ARE SOME GOVERNMENT TAXES ( FOR INDIAN STOCK MARKET).........

ALL THOSE CHARGES ARE:-------

1. BROKERAGE CHARGE
2. SEBI TURN OVER CHARGES
3.STAMP DUTY CHARGES.
4. SST CHARGE
5. TRANSACTION CHARGE
6. BROKERAGE CHARGE.

NOW WE TALK ABOUT SOME TAXES IN DETAILS ........... FOR THAT TAKE THERE ARE TWO FRIENDS ------------ MAX AND YOUNG.......

MAX IS A INVESTOR AND A LONG TERM INVESTOR --- MEANS HE SELL AND BUY STOCK IN DELIVERY TRADE SYSTEM, HE holds HIS STOCK FOR MORE THEN ONE DAY.

WHILE.......... YOUNG IS INVESTOR WITH SHORT TERM INVESTING --- MEANS HE INVEST LESS THEN ONE DAY HE uses INTRADAY TRADING SYSTEM... HE holds HIS STOCK FOR LESS THEN ONE DAY MEANS HE SELL HIS STOCK ON THE SAME DAY HE BUY IT.

SO, LET BOTH INVEST 10,000 IN ABC COMPANY AND BOTH BUY 10 SHARES ON RATE 1000 RUPEE, OF ABC COMPANY.

AND BOTH HAVE DEMAT ACCOUNT OF XYZ BROKER, AND HE charges 0.01% BROKERAGE FOR INTRADAY AND HE charges 0.1% BROKERAGE FOR DELIVERY CHARGE.

SO, MAX WHO DO A DELIVERY TRADE HE PAY 0.10% OF 10,000 MEANS 10 RUPEE FOR DELIVERY BROKERAGE CHARGE, SO, HE pays 10 RUPEE WHEN HE buys THE SHARE AND 10 RUPEE WHEN HE sells THE SHARE, MEANS AFTER PROFIT HIS OVERALL BROKERAGE CHARGE IS 20 RUPEE.

NOW THE WITH THIS HE gives G.S.T TAXES WHICH IS 18% SO, HE has TO PAY 23.6 RUPEE...

ALWAYS REMEMBER THE TAX WHICH YOU GIVE IS ALWAYS PAY ON YOUR TRADE. MEANS IF MAX SELL THESE STOCKS AFTER 1 YEAR IN 11000 THEN HIS BROKERAGE CHARGE WILL BE 0.01% OF HIS TRANSACTION WHICH IS 11 RUPEE.

SO, THE PRICE OF CHARGE MAY BE DIFFER DUE TO YOUR TRADING MONEY.

NOW, THE YOUNG WHO IS AN INTRADAY TRADER MEANS HIS BROKERAGE TAX WILL BE 0.01% OF TRANSACTION WHICH IS 0.01% OF 10,000 WHICH IS 1 RUPEE.

SO, HE gives 1 RUPEE WHEN HE buys AND 1 RUPEE WHEN HE SELL AND WITH 18% G.S.T HIS OVERALL INTRADAY TRADE CHARGE WILL BE 2 + 0.36 = 2.36 RUPEE.

NOW IF WE TALK ABOUT S.T.T CHARGE ON THE WHOLE TRANSACTION 0.1% CHARGED AS S.T.T, SO, FOR MAX IT IS 0.1% 10,000 MEANS 10 RUPEE. SO, 10 RUPEE ON BUY SIDE AND 10 RUPEE ON SELL SIDE SO OVERALL S.T.T WILL BE 20 RUPEE.

BUT IN INTRADAY TRADING THE S.T.T CHARGE SELL SIDE WHICH IS 0.025% OF the WHOLE TRANSACTION WHICH IS 0.025% OF 10,000 WHICH IS 2.5 RUPEE. IN INTRADAY YOUNG WILL PAY FOR S.T.T CHARGE ONLY ON SELL SIDE SO THERE IS ONLY 2.5 RUPEE IS CHARGE.

IF WE TALK ABOUT STAMP DUTY CHARGE THIS CHARGE FOR DELIVERY IS 0.01% OF TURN OVER WHICH IS 1 RUPEE MEANS MAX HAVE TO PAY 1 RUPEE ON BUY SIDE AND 1 RUPEE FOR SELL SIDE OVERALL 2 RUPEE AS A STAMP DUTY TAXES FOR MAX.

FOR YOUNG HE has TO PAY 0.002% OF HIS TRANSACTION WHICH IS 10 PAISE

STAMP DUTY CHARGE WILL BE CHARGED BY GOVERNMENT OF INDIA WHICH IS DIFFERENT FOR DIFFERENT STATE , LET IMAGINE BOTH FRIENDS MAX AND YOUNG ARE FROM GOA THEN BOTH HAVE TO PAY 0.003% FOR DELIVERY TRADE AND INTRADAY TRADE BOTH, SO BOTH FRIENDS HAVE TO PAY 0.003% off the WHOLE TRANSACTION WHICH IS 0.003% OF 10,000 WHICH IS 0.3 RUPEE.

NOW IF WE TALK ABOUT TRANSACTION CHARGES... THIS IS ABOUT 0.00325% BY NSE ( NIFTY) AND 0.00275% BY BSE ( SENSEX). THE TRANSACTION CHARGE WILL BE SAME FOR BOTH TYPE OF TRADE. THIS CHARGE IS CHARGED BY STOCK EXCHANGE. IF BOTH friends BUY STOCK FROM NSE SO, BOTH HAVE TO PAY 0.00325% OF 10,000 WHICH IS 0.325 FOR BOTH SIDE MEANS ONE TIME FOR BUY A STOCK AND ANOTHER TIME TO SELL THE STOCK, WHICH IS 0.325+0.325= 0.65 RUPEE

GST IS ALSO CHARGED BY THIS TYPE OF TRANSACTION SO 18% G.S.T SO, TOTAL TAX CHARGED BY STOCK EXCHANGE WILL BE 0.77 RUPEE.

NOW IF WE TALK ABOUT S.E.B.I TURN OVER CHARGE WHICH IS SECURITY AND EXCHANGE BANK OF INDIA, WHICH IS REGULATED BY CAPITAL MARKET OF INDIA.

AS RBI ( FOR INDIA) REGULATE THE BANK SYSTEM OF INDIA THEN SEBI ( FOR INDIA) IS REGULATE THE RULES FOR CAPITAL MARKET. FOR BOTH SEBI TURNOVER CHARGE IS SAME WHICH IS 0.002% OF TOTAL TRANSACTION MEANS 0.002% FOR 10,000 WHICH IS 0.02 RUPEE FOR BUY THE STOCK AND 2 RUPEE TO SELL THE STOCK SO 0.04 RUPEE IS CHARGED TO BOTH FRIENDS,

THERE IS ONE ANOTHER CHARGE WHICH IS CHARGE BY INDIAN DEPOSITORIES...

THERE ARE TWO DEPOSITORIES FOR STOCK MARKETERS N.S.D.L AND C.D.S.L.

THESE ARE THE DEPOSITORS WHO DEPOSIT YOUR STOCK WITH SECURITY IN ELECTRONIC WAY FOR THAT THEY CHARGE A FEE BUT THEY DIRECTLY NOT CHARGE TO THE BUYERS BUT THEY CHARGE TO DP, DP IS JUST LIKE AN AGENT WHICH GIVE FEE RECIPT OF N.S.D.L OR C.D.S.L TO THE BROKER WHERE YOU START YOUR ACCOUNT,

DIFFERENT TYPE OF DP CHARGE DIFFERENT AMOUNT TO YOU BUT THIS AMOUNT IS BETWEEN 10 TO 35 RUPEE.

LET IMAGINE THE AMOUNT CHARGED BY BOTH FRIENDS ARE 15 RUPEE FOR MAX BUT YOUNG HAVE 0 CHARGE BECAUSE THERE IS NO ANY CHARGE FOR INTRADAY TRADING MEANS AS A DEPOSITORS CHARGE,

SO OVERALL MAX HAVE TO PAY -------- BY MAX

1. BROKERAGE CHARGE = 23.6
2. SEBI TURN OVER CHARGES = 0.04
3.STAMP DUTY CHARGES. = 0.3
4. SST CHARGE = 20
5. TRANSACTION CHARGE = 0.77
6. DEPOSITOR CHARGE. = 15

TOTAL 61.41 RUPEE

AND FOR YOUNG OVERALL TAX FOR STOCK IS TO PAY-------- BY YOUNG

1. BROKERAGE CHARGE = 2.36
2. SEBI TURN OVER CHARGES = 0.04
3.STAMP DUTY CHARGES. = 0.4
4. SST CHARGE = 2.5
5. TRANSACTION CHARGE = 0.77
6. DEPOSITOR CHARGE. =0

TOTAL 6.07

BUT DUE TO LESS TAX NEVER DO INTRADAY IF YOU ARE BEGINNER BECAUSE WITH IN ONE DAY YOU NOT ABLE TO UNDERSTAND THE BEST COMPANY AND YOU MAY SUFFER WITH LOSS...........

SO THIS IS THE TAX REPORT OF SHARE MARKET WHICH IS INCREASED DUE TO G.S.T

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