FINNSYS ACADEMY

Stamp Duty on Mutual Fund Investors from 1st July, 2020

Is your client's investment amount  less by around Rs. 1 or so in App and Web ? 

Then we would like to take this opportunity to inform you that, beginning from 1 July 2020,
your client would be charged a stamp duty of 0.005% on all mutual fund purchases in accordance with the orders issued by the Government of India.

Purchases include lumpsum, SIP, Switch-in (including triggers from past STP registrations), and Dividend Reinvestment transactions.

However, there would be no stamp duty on redemption.

Let’s understand this with an example:

Amount Invested = Rs. 1,000
Stamp duty = 0.05 (1,000*0.005/100 )
NAV of Fund = Rs. 10
Units Allotted for = 999.95


We advise that you send a general update or mailer from your end informing all of your clients of this change.



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