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
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.