How much stamp duty is charged on mutual fund purchases?

Lesson 32 of 50 for advisers · Stamp duty on purchases · 3 min read · Reviewed 13 Nov 2026

Quick answer

0.005% of the value of units issued, since 1 Jul 2020, so ₹500 on ₹1 crore. Switch-ins are charged too, because the new units are bought with the redemption money. Redemptions, gifts, conversions between statement and demat form, and segregated portfolio units carry no duty.

Since 1 Jul 2020, mutual fund units bought carry stamp duty of 0.005% of their value. ₹1 crore of units issued costs ₹500.

A switch-in is stamped too, because the new units are treated as bought with the money from the switch-out.

Redemptions carry no duty. Nor do gifts, segregated portfolio units, or a move between statement and demat form.

The registrar collects it for statement units and the exchange or depository for demat units. It goes to the buyer’s state.

Key idea: A transfer of units on a delivery basis, such as a sale on the exchange, is stamped at 0.015%.

Sources

Try the short quiz on this page to check what stuck.

Common questions

Is GST included in the value stamped?

No. Duty is on the value of units issued, without other charges such as GST.

Which law sets the rate?

Schedule I, Article 56A of the Indian Stamp Act 1899, added by the Finance Act 2019.

Does an ETF redemption in a basket pay duty?

No, according to SEBI’s FAQs.

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