Is stamp duty applicable for mutual fund purchases on FYERS?
Yes, stamp duty is applicable on all mutual fund purchases made through FYERS, as per government regulations. This applies to both lumpsum investments and SIP (Systematic Investment Plan) instalments.
What is stamp duty in mutual funds?
Stamp duty is a regulatory charge levied by the government on the purchase of mutual fund units. It applies to the investment amount (not NAV) and is deducted upfront before units are allotted.
The current stamp duty rate is:
- 0.005% on the purchase or switch-in amount for mutual fund units (applicable to all types: equity, debt, hybrid, etc.)
For example, if you invest ₹10,000 in a mutual fund, a stamp duty of ₹0.50 will be deducted before units are allotted.
What If...
| Scenario | Explanation |
|---|
| SIP investments | Stamp duty applies to every SIP instalment, not just lumpsum investments. |
| Switch between schemes | Stamp duty is applied on the target scheme’s investment amount in a switch. |
| Redemption of mutual funds | No stamp duty is levied on redemption or withdrawal of mutual fund units. |
| Dividend reinvestment | Stamp duty is applied on dividend amounts that are reinvested to buy additional units. |
Stamp duty is charged by the registrar (RTAs) and not by FYERS. It is displayed clearly in your transaction statement and contract note.
Last updated: 16 Jun 2025
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