With the recent changes in stamp duty, all transactions done on stock exchanges will have the unified Stamp Duty rates across the country. From January 9, 2020, stock exchanges will collect the stamp duty for trading stocks and commodities on exchanges and depositories will collect for any off-market transactions at a unified rate and deposit the proceeds with the central government, which in turn will divide it among the states. The off-market transaction including the transfer of shares at the time of inheritance, gifts, and transactions in unlisted securities will also attract stamp duty. The new stamp duty would be charged only on the buy-side of the transaction. Earlier it was charged on both buy and sell trades.
Stamp duty is charged per contract note and based on traded volume. Previously, brokers used to collect stamp duty from clients at different rates based on the client's resident state and pay to the respective state governments. But going forward, unified stamp duty across all the states of India will be collected by the broker to pay it to the exchange.