Sharekhan Tax & Commission Calculator 2024
Comprehensive Guide to Sharekhan Tax & Commission Calculation
Module A: Introduction & Importance
Understanding how tax and commission is calculated in Sharekhan is crucial for every investor and trader in the Indian stock market. Sharekhan, as one of India’s leading full-service brokers, applies a complex structure of fees that directly impacts your net profits. This guide will demystify the entire calculation process, helping you make informed trading decisions.
The calculation involves multiple components:
- Brokerage fees – Sharekhan’s primary revenue source
- Government taxes – STT, GST, and stamp duty
- Exchange charges – Transaction fees and SEBI levies
- Other miscellaneous charges that vary by trade type
According to SEBI regulations, all brokers must disclose their fee structures transparently. However, the actual impact on your trades isn’t always immediately apparent without proper calculation tools.
Module B: How to Use This Calculator
Our interactive calculator provides precise calculations for all trade types. Follow these steps:
- Select Trade Type: Choose between Delivery, Intraday, Futures, or Options. Each has different fee structures.
- Enter Trade Value: Input the total monetary value of your trade in Indian Rupees.
- Specify Prices: Provide buy and sell prices per unit to calculate profit/loss.
- Set Quantity: Enter the number of units/shares traded.
- View Results: The calculator instantly displays all charges and their breakdown.
- Analyze Chart: Visual representation shows the proportion of each charge component.
Pro Tip: For options trading, the calculator automatically accounts for premium amounts and different STT rates on sell transactions.
Module C: Formula & Methodology
The calculation follows this precise methodology:
1. Brokerage Calculation
Sharekhan charges brokerage as a percentage of trade value:
- Delivery: 0.50% (minimum ₹20 per trade)
- Intraday: 0.05% (minimum ₹20 per trade)
- Futures: 0.05% (minimum ₹20 per trade)
- Options: ₹100 per lot (or 1% of premium, whichever is higher)
2. STT (Securities Transaction Tax)
| Trade Type | STT Rate | Applied On |
|---|---|---|
| Delivery (Buy) | 0.10% | Trade Value |
| Delivery (Sell) | 0.10% | Trade Value |
| Intraday (Sell) | 0.025% | Trade Value |
| Futures (Sell) | 0.0125% | Trade Value |
| Options (Sell) | 0.0625% | Premium Amount |
3. Transaction Charges
NSE/BSE levy transaction charges:
- Equity Delivery: 0.00325% of turnover
- Equity Intraday: 0.00325% of turnover
- Futures: 0.002% of turnover
- Options: 0.05% of premium turnover
4. GST Calculation
18% GST is applied on the sum of brokerage and transaction charges.
5. SEBI Charges
SEBI levies ₹10 per crore of turnover (0.0001%).
6. Stamp Duty
Varies by state (0.002% to 0.015% of trade value for delivery trades).
Module D: Real-World Examples
Example 1: Delivery Trade
Scenario: You buy 100 shares of Reliance at ₹2,500 and sell at ₹2,600 after 5 days.
Calculation:
- Trade Value: ₹2,60,000
- Brokerage (0.50%): ₹1,300
- STT (0.10% buy + 0.10% sell): ₹520
- Transaction Charges: ₹16.90
- GST (18%): ₹243.48
- SEBI Charges: ₹0.26
- Stamp Duty: ₹3.90
- Total Charges: ₹2,087.54
Example 2: Intraday Trade
Scenario: You buy 500 shares of TCS at ₹3,200 and square off at ₹3,250 same day.
Calculation:
- Trade Value: ₹16,25,000
- Brokerage (0.05%): ₹812.50
- STT (0.025% sell): ₹406.25
- Transaction Charges: ₹105.69
- GST (18%): ₹231.63
- SEBI Charges: ₹1.63
- Total Charges: ₹1,557.69
Example 3: Options Trade
Scenario: You sell 1 lot (250 units) of Nifty 18000 CE at ₹150 premium.
Calculation:
- Premium Received: ₹37,500
- Brokerage (₹100/lot): ₹100
- STT (0.0625%): ₹23.44
- Transaction Charges: ₹37.50
- GST (18%): ₹28.15
- SEBI Charges: ₹0.38
- Total Charges: ₹199.47
Module E: Data & Statistics
Comparison of Brokerage Charges (2024)
| Broker | Delivery | Intraday | Futures | Options |
|---|---|---|---|---|
| Sharekhan | 0.50% | 0.05% | 0.05% | ₹100/lot |
| ICICI Direct | 0.55% | 0.05% | 0.05% | ₹100/lot |
| HDFC Securities | 0.50% | 0.05% | 0.05% | ₹100/lot |
| Zerodha | 0.03% | 0.03% | 0.03% | ₹20/order |
| Upstox | 0.05% | 0.05% | 0.05% | ₹20/order |
Impact of Charges on Different Trade Sizes
| Trade Size (₹) | Delivery (%) | Intraday (%) | Futures (%) | Options (₹) |
|---|---|---|---|---|
| 10,000 | 1.35% | 0.32% | 0.30% | 199 |
| 50,000 | 0.78% | 0.21% | 0.20% | 199 |
| 1,00,000 | 0.65% | 0.16% | 0.15% | 199 |
| 5,00,000 | 0.56% | 0.12% | 0.11% | 199 |
| 10,00,000 | 0.53% | 0.11% | 0.10% | 199 |
Data source: National Stock Exchange of India
Module F: Expert Tips
7 Ways to Reduce Trading Costs
- Consolidate Trades: Fewer large trades reduce fixed charges per transaction.
- Hold Longer: Delivery trades have higher STT but lower brokerage than intraday.
- Avoid Small Trades: Minimum brokerage of ₹20 makes small trades proportionally expensive.
- Use Bracket Orders: Combines entry, stop-loss, and target in one order (single brokerage).
- Monitor Turnover: High turnover increases transaction charges and SEBI fees.
- Options Strategy: Selling options can offset premium costs through credits.
- Tax Harvesting: Offset capital gains with losses to reduce tax liability.
Common Mistakes to Avoid
- Ignoring the minimum brokerage which can significantly impact small trades
- Forgetting that STT is charged on both buy and sell for delivery trades
- Not accounting for GST on brokerage + transaction charges (not just brokerage)
- Overlooking state-specific stamp duties that vary across India
- Assuming all brokers have similar charge structures (they vary widely)
Module G: Interactive FAQ
Why does Sharekhan charge higher brokerage than discount brokers?
Sharekhan is a full-service broker offering research reports, advisory services, and physical branches – unlike discount brokers that provide only execution platforms. The higher brokerage covers these additional services:
- Dedicated relationship managers
- Comprehensive research reports
- Physical branch support
- Advanced trading platforms
- Educational resources for investors
For active traders, these services may justify the higher costs, while long-term investors might prefer discount brokers.
How is STT different from income tax on capital gains?
STT (Securities Transaction Tax) and capital gains tax serve different purposes:
| Aspect | STT | Capital Gains Tax |
|---|---|---|
| Purpose | Tax on transactions | Tax on profits |
| When Applied | At time of transaction | At time of filing returns |
| Rate | 0.01% to 0.125% | 15% (short-term), 10% (long-term) |
| Collected By | Broker | Income Tax Department |
| Deductible | No | STT can be set off against LTCG |
STT was introduced in 2004 to simplify capital gains taxation. For delivery trades, STT paid can be used to offset long-term capital gains tax under Section 112A.
Does Sharekhan charge for failed orders or modifications?
Sharekhan’s policy on order modifications and cancellations:
- Failed Orders: No charges if order doesn’t execute
- Order Modifications: ₹20 + GST per modification for equity trades
- Order Cancellation: Free if cancelled before execution
- After-Market Orders: ₹50 + GST for AMO placement
- Bracket Orders: Single brokerage charge for all legs
Note that exchange transaction charges may still apply for modified orders that get executed.
How are charges calculated for partial executions?
For partially executed orders, Sharekhan applies these rules:
- Brokerage is charged only on the executed quantity
- STT applies proportionally to the executed value
- Transaction charges are calculated on actual turnover
- Minimum brokerage (₹20) applies per executed order, not per partial fill
- GST is calculated on the actual brokerage + transaction charges
Example: If you place an order for 1000 shares but only 600 execute, you pay charges on ₹600 worth of trade value, but still incur the ₹20 minimum brokerage.
What additional charges might appear in my contract note?
Beyond the standard charges, your contract note might include:
- DP Charges: ₹13.50 + GST per scrip for delivery trades (debited separately)
- Call & Trade: ₹50 + GST if placing orders via phone
- Physical Contract Notes: ₹20 + GST if requested
- Margin Funding: 0.05% per day interest if using margin
- Pledge Charges: ₹30 + GST for pledging shares
- Instant Payment Gateway: ₹9 + GST for instant fund transfers
Always review your contract note carefully as these can add 5-15% to your total costs for certain transactions.