Is stamp duty applicable for mutual fund purchases on Coin?
Stamp duty is applicable for the purchase of mutual funds at a rate of 0.005%. The applicable stamp duty will be adjusted with the units allotted to the investor and is not separately charged.
If ₹10,000/- is invested in a mutual fund, then the applicable stamp duty is:
₹10,000 × 0.005% = 0.5 (50 Paisa).
Hence, the stamp duty is adjusted, and the investment amount gets reduced to ₹9,999.50/. Assume the NAV of the scheme is 10. The number of units allotted will be ₹9,999.50 / 10 = 999.95 units.
Did you know? When purchasing mutual funds, stamp duty is currently not displayed under charges on Console. Zerodha is working on making this available soon.