The Tax Publishers

Companies Act, 2013--Transfer of Shares

Stamp Duty on Transfer of Securities

CA. Deepak Harwani

The Learned Author presents a brief write up on payment of Stamp Duty on Transfer of shares of a company.

1. Introduction

The Ministry of Corporate Affairs has notified Indian Stamp (Collection of Stamp Duty through Stock Exchanges, Clearing Corporations & Depositories) Rules, 2019 to levy stamp duty on securities transactions. These amendments have come into effect from 1st July, 2020.

2. Overview of Amendment

With respect of securities issued in dematerialized form, the depository will collect stamp duty on the allotment made, on the behalf of State Government.

For shares which are issued in physical form, the stamp duty will be chargeable at the rate of 0.005% of the market price, which will be the consideration marked on the Share Certificate and further on transfer of shares, it will be 0.015% on amount of shares transferred.


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