Day 17: Brokerage and Taxes #tax #stockmarket #brokerage

Brokerage is a fee charged by a stockbroker for executing buy or sell orders on your behalf.
Taxes are mandatory payments levied by the government on various income and transactions. In the Indian stock market, there are primarily two types of taxes:

Brokerage Charges:

Fees charged by brokers for trading services.
Vary based on broker type, trading volume, and order type.
Taxes:

Capital Gains Tax: Tax on profits from selling securities.
Short-term (less than 1 year): 15%
Long-term (more than 1 year): 10% (above ₹1 lakh)
Securities Transaction Tax (STT): Tax on buying and selling securities.
Stamp Duty: State-specific tax on transaction value.
GST: Tax on brokerage and transaction charges.
Minimizing Costs:

Choose a discount broker.
Utilize brokerage plans.
Time trades strategically.
Consult a financial advisor.