The question rather should be – How much does the Indian Government extort from India Stock Market.
Indian Government like from any other sources, makes hell lot of thousand of crores from Indian Stock Market. There are so many ways that government extort money from stock market in the name of tax and fees.
- Every single trade that you make – there is Transaction tax applied.
- There is GST of 18% on all the brokerages that you pay to you Broker.
- There is a Stamp duty also on the trade
- Then there is SEBI fee on top of it.
- Then there is some unknown Cess fee applied.
(Mind you these fee has to be paid as soon as trade is done at the end of the day irrespective of your profit or loss)
Do you know that how much is the average turnover of trades on NSE and BSE alone?
Average turnover on NSE and BSE stands between 6 to 10 lakhs crore per day.Even if you go by the minimum extortion level of SEBI charge of 0.0002 % on the lower side of 6 lakh crores – then it comes around 1,20,000 (1 crore 20 lakhs) or 12 million.
12 million (1 crore 20 lakh) only from SEBI fee – per day? You must be thinking that it could be a joke or am I kidding? But wait – This is the least possible fee that I have mentioned. Now add up GST, Stamp duty and all those idiotic cess, which are levied on you for punishing you to trade or make some money in this market. If you add up those figures, that on average comes around 20 times of it – so 12 million multiply by 20 = 240 million (24 crores).
24 crore per day – and this market works around 240 to 250 days approx per year. Lets take the lower side – say 240 days. Now 24 crore X 240, that comes to 57,60,00,00,000 (5,760 crore) a year
Be assured that this is the lowest calculation we have taken. You can be assured of much more than it if you go by penny by penny calculation.
One of the part in these taxes is STT. The Slavery transaction tax. They call it Securities Transaction Tax. Do you know that STT collection alone in 2017–18 was around Rs. 111 Billion. Yes Billion with a Big B.
Now comes Bonanza shock:
What about the fee that is taken from Brokers as Membership ?
What about the fee that you take while listing a company on exchange ?
What about commodity, forex other trades happening and fees through them ?
That runs in millions and collectively coming up in Billions again.
If that was not enough – Govt now started charging tax on dividend as well.
And all of this is done despite the fact whether you made the money or not. But our Govt always make money from Stock Market.
