Process of stamp duty payment on unlisted shares.
Stamp duty, at the rate of 0.015% of the transaction value i.e. the consideration, is payable on the transfer of unlisted shares.
The said duty is required to be paid by the seller to his depository (a depository facilitates trading of securities and maintains them electronically, in India there are only two depositories viz. CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited)).
The seller first needs to check with his stock broker technically called as a depository participant (DP) (a Depository Participant acts an intermediary between the depository and the investor), as to whether they would be making the stamp duty payment on behalf of the seller to the depository and debit his demat account for reimbursement, if no,
The seller then, on his own, has to pay the stamp duty amount to the Depository with whom his demat account is held (a quick trick to identify if your demat is held with CDSL or NSDL is to look at your 16 digit demat account number i.e. if it starts with ’12 or 13’ then it’s a CDSL account, in case it starts with an ‘IN’ it’s a NSDL account.
In case you need to calculate and know the stamp duty amount leviable, you may follow the below steps;
- https://nsdl.co.in/stampduty_calculator.php – Open the link in your browser
- Make sure that ‘Demat Account Holder’ button is checked on the top
- Type of Security, as applicable, needs to be selected from the drop-down list, eg. ‘Equity Share’
- Quantity of no. of shares, intended to be transacted, needs to be mentioned
- Price (in Rs.)e. consideration per security eg. ‘Equity share’ is required to be mentioned here
- Consideration (in Rs.) will be automatically calculated (it will multiply quantity with the price per instrument as mentioned in 4 and 5 above respectively)
- Stamp Duty Rate (in percentage) will be auto filled basis the type of security mentioned in 3 above
- Estimated Stamp Duty Amount (in Rs.) will be automatically calculated (it will multiply the Consideration with the Stamp Duty Rate as mentioned in 6 and 7 above respectively)
Note – Please make a note of the stamp duty amount as shown against point no. 8 above, please make sure that you round it up at least to the nearest rupee.
NSDL does give an option to pay the stamp duty online, you need to follow the following steps in case you need to pay the stamp duty for a NDSL account
- https://eservices.nsdl.com/sd-payment-web/#/paystampduty – Open the link in your browser
- Make sure that ‘Demat Account Holder’ button is checked on the top
- DP ID – DP Name needs to be selected from the drop-down list (the first 8 digits of your demat account no. is the DP ID)
- Client ID needs to typed-in here (the last 8 digits of your demat account no. is the Client ID)
- Mobile Number preferably as registered with your stock broker (DP)
- Email ID preferably as registered with your stock broker (DP)
- Estimated stamp duty amount needs to be mentioned
- Generate Captcha needs to clicked and verified
- Make Payment needs to be clicked next
- Recheck the DP ID, the Client ID and the Amount of Stamp Duty required to be paid and click on ‘Confirm’ button
- Lastly, the payment could be made using Credit Card, Debit Card, Net Banking, UPI or a Wallet.