--- title: "Orders, Costs & Taxation | RupeeCase Learn" description: "Market orders, limit orders, brokerage, STT, LTCG and STCG, the full real-world cost of investing in Indian equity markets." source_url: "https://www.rupeecase.com/learn/path-1/module-1-5-orders-costs-taxation" --- [Path 01 5 of 5](/learn/path-1/)Orders, Costs & Taxation[Path 01](/learn/path-1/) Here's something most investing education skips entirely: every trade you make has a real cost. Not just brokerage, there's [STT](/learn/glossary#stt), exchange charges, [SEBI](/learn/glossary#sebi) [turnover](/learn/glossary#turnover) fees, GST, and stamp duty all stacking up simultaneously. And when you exit with a profit, tax stacks on top of that. For a buy and hold investor who trades once a year, these costs are minor. For a systematic strategy that rebalances every few weeks, they add up to a real number every year, and a strategy that looks great before costs can look very different after. I learned early to read every back test from the bottom line up: net of costs first, then everything else. Here is the full picture: order types, every line of the cost of a trade, capital gains tax as it stands for FY 2026 to 27 under the new Income-tax Act, 2025, and tax loss harvesting. By the end you'll know what it actually costs to invest in Indian equities. ## Order types, how you actually buy and sell When you tap "Buy" in a broker app, you're placing an order. Which type you use matters, especially when markets are moving fast or the stock has thin liquidity. Market Order Executes immediately Buy or sell at whatever the best available price is right now. Guaranteed execution, no price control. In liquid stocks like [RILReliance](https://www.nseindia.com/get-quotes/equity?symbol=RELIANCE) or [HDFCBKHDFC Bank](https://www.nseindia.com/get-quotes/equity?symbol=HDFCBANK), the price difference between what you expect and what you get is tiny. In thin stocks, it can be significant. Best for: liquid large-cap stocks when speed matters more than price precision Limit Order Price-controlled You specify the maximum price you're willing to pay (buy limit) or minimum you'll accept (sell limit). Only executes if the market reaches your price, no execution guarantee. If the stock never hits your price, the order expires at end of day. Best for: mid/small caps, illiquid stocks, or when you have a specific entry price Stop-Loss (SL) Risk management Triggers a sell once a stock hits your stop price. Once triggered, becomes a limit order at your specified limit price. You control the exit price but risk non-execution if the price gaps past your limit in a fast market. Best for: limiting downside while preserving some price control Stop-Loss Market (SLM) Guaranteed exit Triggers a market order once the stop price is hit. Guarantees execution but no price control. Final price may differ from the trigger price in fast-moving markets. Best for: when guaranteed exit matters more than exact exit price **For [systematic investing](/learn/glossary#systematic-investing):** a rebalance is just a list of buy and sell orders. On RupeeCase you see the list first, you approve it, and then the orders go to your own broker. The stocks in the lineup come from NSE index universes, so most of them trade enough that the gap between the price you see and the price you get stays small. For thinner names, a limit order protects you from a bad fill. [NSE India, Order Types & Trading Sessions](https://www.nseindia.com/trade/about-order-types) ## The full cost of a trade When you place a trade, you're paying multiple parties simultaneously. Most people notice only the brokerage, but the actual total cost includes six charges. Here's the complete breakdown for a round-trip on ₹1,00,000 of shares: Full round trip cost, delivery trade Buy ₹1,00,000 + sell ₹1,00,000 = ₹2,00,000 turnover, flat fee broker, rates as of October 2026 Brokerage (₹20 per order, both sides; zero at some brokers)₹0 to ₹40 STT, Securities Transaction Tax (0.1% on buy and on sell)₹200 Exchange transaction charges (NSE, 0.00307% a side, as of Mar 2026)₹6 SEBI turnover fee (₹10 per crore)₹0.20 GST at 18% on brokerage, exchange and SEBI fees₹1 to ₹8 Stamp duty on the buy side only (0.015%)₹15 Depository charge on the sell, per stock per day (varies by broker)about ₹15 to ₹20 Approximate total round trip₹237 to ₹289 Varies by broker and trade size. Percentage fee brokers cost more. STT and stamp duty are the same everywhere. As a share of the ₹1,00,000 you invested, a full round trip costs about **0.24% to 0.29%**, and STT alone is ₹200 of it. Notice what dominates. Not brokerage, which competition has driven to almost nothing. Tax. That is why the number of trades matters more than the broker you pick. ### The individual charges explained **Brokerage:** Flat fee brokers, now the norm in India, charge a fixed amount per order, often ₹20, whatever the order size. Some charge nothing on delivery trades. Percentage fee brokers charge 0.1% to 0.5%. **STT (Securities Transaction Tax):** A government tax collected at source. For equity delivery trades: 0.1% on both buy and sell. For intraday trades: 0.025% on the sell side only. Budget 2026 raised STT on derivatives from 1 April 2026, futures to 0.05% and options to 0.15%, and left the equity delivery rate unchanged. STT is the largest unavoidable cost in equity investing. **Exchange Transaction Charges:** Fees paid to NSE or BSE for their infrastructure. Since October 2024 SEBI has required one flat rate for everyone. NSE's cash market charge is ₹3.07 per lakh, or 0.00307%, on each side, including the investor protection fund contribution, under its circular effective 1 March 2026. Small but real. **SEBI Turnover Fee:** ₹10 per crore of turnover. Negligible for most retail portfolios. **GST:** 18% on brokerage, exchange charges and the SEBI fee. Not on STT or stamp duty, which are taxes, not service fees. **Depository (DP) charge:** When shares leave your demat on a sale, the depository and your depository participant charge a fixed fee per stock per day, usually ₹15 to ₹20 including GST. It does not depend on the amount, which makes it painful on small sells. **Stamp Duty:** Applies on the buy side only, at a uniform rate across India since 1 July 2020: 0.015% on delivery purchases and 0.003% on intraday purchases, collected through the exchange. [NSE India, Transaction Charges Schedule](https://www.nseindia.com/trade/charges) [Income Tax India, STT Rates](https://www.incometax.gov.in) **The cost of frequent [rebalancing](/learn/glossary#rebalancing):** what matters is how much of the portfolio trades, not how often you look at it. A strategy that swaps 30% of a ₹10 lakh portfolio at each rebalance trades ₹3 lakh each time. Do that 13 times a year and STT alone is ₹3,900. Rebalance every week with the same turnover and the bill quadruples. Turnover is the number to ask about before anything else. The worked example below puts every rupee on the table. ## Capital gains taxation, how your profits are taxed When you sell shares at a profit, the government takes a share. The rate depends mainly on how long you held them. The rates below came in with Budget 2024 for sales from 23 July 2024, and they carried over unchanged when the Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026. The section numbers changed (the old 111A and 112A are now sections 196 and 198). The rates did not. Short-Term Capital Gains (STCG) 20% Applies when you sell equity shares held for **12 months or less**. Rate raised from 15% to 20% from 23 July 2024. No exemption threshold, tax applies from the first rupee of gain. Held ≤ 12 months · No exemption Long-Term Capital Gains (LTCG) 12.5% Applies when you sell equity shares held for **more than 12 months**. Rate raised from 10% to 12.5% from 23 July 2024. The first ₹1.25 lakh of LTCG each financial year is **tax free**. Held > 12 months · ₹1.25L exempt **The 12-month holding rule in practice:** If you bought [INFYInfosys](https://www.nseindia.com/get-quotes/equity?symbol=INFY) on 15 January 2025 and sell on 15 January 2026, you have held for exactly 12 months, which is not more than 12 months: [STCG](/learn/glossary#stcg) at 20%. Sell on 16 January 2026 or later and it is [LTCG](/learn/glossary#ltcg) at 12.5%, with the ₹1.25 lakh exemption. One day makes a real difference on large positions. [Income Tax India, Capital Gains Guide](https://www.incometaxindia.gov.in) 20% STCG tax rate on equity held 12 months or less, from 23 July 2024 12.5% LTCG tax rate on equity held more than 12 months, from 23 July 2024 ₹1.25L Annual LTCG exemption, gains up to this are tax free each year ### How LTCG is actually calculated 1 Calculate your gain Sale price minus your cost of acquisition (what you paid). E.g., bought TCS at ₹3,500, sold at ₹4,200 after 18 months, gain = ₹700 per share. Multiply by shares held. 2 Apply the ₹1.25 lakh exemption Total LTCG across all equity sales in a financial year, up to ₹1.25 lakh, is tax-free. If your total LTCG is ₹80,000, zero tax. If it's ₹2 lakh, you pay 12.5% on ₹75,000 = ₹9,375 only. 3 Tax on the remaining gain 12.5% flat on LTCG above ₹1.25 lakh. No indexation benefit is available for listed equity. Since 23 July 2024 indexation survives only as an option for land or buildings bought before that date by resident individuals and HUFs. Health and education cess of 4% applies on top, and for large incomes a surcharge capped at 15%. ### Tax loss harvesting, using losses to reduce your tax bill Capital losses can be used to offset capital gains, reducing your tax liability. This is called **tax loss harvesting**. * **STCL (Short-Term Capital Loss)** can offset both STCG and LTCG * **LTCL (Long-Term Capital Loss)** can only offset LTCG, not STCG * Unabsorbed losses can be **carried forward for 8 financial years**, but only if you file your return by the due date **Practical example:** You have ₹3 lakh LTCG from selling [ITCITC](https://www.nseindia.com/get-quotes/equity?symbol=ITC) shares held 2 years. You also have ₹80,000 LTCL from a position that didn't work out. Net LTCG = ₹2.2 lakh. After the ₹1.25 lakh exemption, taxable LTCG = ₹95,000. Tax = ₹95,000 × 12.5% = ₹11,875, plus 4% cess. Without the loss, tax would have been ₹21,875. Booking the loss saved ₹10,000 before cess. ### Dividends and buybacks **Dividends** are added to your income and taxed at your slab rate. The company deducts 10% TDS once your dividends from it cross ₹10,000 in a financial year; you claim that back against your final tax. **Buybacks** changed twice in two years. From 1 October 2024 the whole buyback amount was taxed as a dividend. The Finance Act, 2026 reversed that from 1 April 2026: for ordinary shareholders, a buyback is again a sale, taxed as a capital gain on the profit over your cost. Promoters pay an extra levy on top. ## How costs affect your real returns Costs compound against you the same way returns compound for you. A strategy generating 18% [CAGR](/learn/glossary#cagr) before costs and taxes might deliver 13 to 15% after everything. The gap between gross and net return is what separates good strategy design from bad. ▼ Real return after costs and tax, illustrative Illustrative only Gross Return 18% Before any costs After Costs 16 to 17% Brokerage, STT, charges deducted After Tax 13 to 15% LTCG/STCG on rebalancing gains These are illustrative. Actual net returns depend on rebalancing frequency, holding periods, and tax bracket. ## A worked example: one year of rebalancing, every rupee Take a ₹10 lakh portfolio in a strategy that rebalances every four weeks, 13 times a year. Assume each rebalance sells ₹1.5 lakh of stocks and buys ₹1.5 lakh of new ones: ₹3 lakh of traded value, 30% of the portfolio. Ten stocks out, ten in. | Cost line | Per rebalance | Per year (13) | | --- | --- | --- | | STT, 0.1% of ₹3 lakh | ₹300 | ₹3,900 | | Stamp duty, 0.015% of ₹1.5 lakh bought | ₹23 | ₹293 | | Exchange charges and SEBI fee | ₹10 | ₹130 | | DP charges, 10 stocks sold at about ₹18 | ₹180 | ₹2,340 | | Brokerage, 20 orders at ₹20, plus GST | ₹474 | ₹6,162 | | RupeeCase fee, 0.2% of ₹3 lakh | ₹600 | ₹7,800 | | Total | ₹1,587 | ₹20,625, about 2.1% of capital | Rates: STT and stamp duty as legislated; NSE transaction charge about ₹3 per lakh a side; SEBI fee ₹10 per crore; RupeeCase fee 0.2% of traded value as on the pricing page. Brokerage and DP charges vary by broker. Excludes [slippage](/learn/glossary#slippage) and tax on gains. Where ₹20,625 of yearly trading cost goes * RupeeCase fee**37.8%** * Brokerage and GST**29.9%** * STT**18.9%** * DP charges**11.3%** * Stamp, exchange, SEBI**2.1%** The worked example above: ₹10 lakh, 13 rebalances, ₹3 lakh traded each time, ₹20 an order brokerage. Illustration, not a quote. Look at where the money goes. With a zero brokerage broker the total drops to about ₹14,500, or 1.45%. Halve the turnover and almost every line halves with it. That is the real lever. When you compare any strategy, on RupeeCase or anywhere else, ask for its turnover and its returns net of costs, and do this sum yourself. Then comes tax. Gains on stocks held 12 months or less are taxed at 20%. A strategy that rotates every few weeks realises mostly short term gains, so its after tax return depends a lot on your own situation. A strategy can beat its benchmark before tax and lose to it after. That is not a reason to avoid rotation. It is a reason to measure it honestly. **Myth**With a zero brokerage broker, trading is free. **Fact**STT, stamp duty, exchange and SEBI fees, GST and DP charges still apply. On a ₹1 lakh round trip they come to about ₹240, and STT alone is ₹200. ## Common mistakes with costs and tax **Choosing a broker on brokerage alone.** STT, stamp duty and DP charges are often bigger than brokerage on a delivery trade. **Selling one day too early.** Held for 12 months or less means 20% STCG. Check the purchase date before you sell a big winner. **Wasting the ₹1.25 lakh exemption.** It resets every financial year and cannot be carried forward. Some investors book gains up to it each March and buy back, which resets the cost; check the rules for your case. **Not filing to carry forward losses.** A loss you do not report in a return filed on time is lost for good. **Market orders in thin stocks.** The quote you see may be for 50 shares. Use a limit order. ## How this shows up in RupeeCase RupeeCase charges one fee: 0.2% of traded value, only when a rebalance trades. No subscription, no AUM fee, no profit share. Brokerage, STT, stamp duty and the rest go through your own broker at standard rates and show on your contract note, exactly as if you placed the orders by hand. The [pricing page](/pricing) works through the fee for different portfolio sizes and cadences, and the [fee calculator](/fee-calculator) lets you plug in your own. Each strategy page states its rebalance cadence, for example every two weeks for [Allcap](/strategies/allcap) and every four weeks for [Nifty 50 Equal Weight](/strategies/nifty-50-equal-weight). Before a rebalance trades, you see the orders and accept them. The fee is charged only on what actually trades. Sample portfolio, sample data. Are gains on shares bought before February 2018 taxed in full?No. For listed shares bought before 1 February 2018, the cost is stepped up to the higher of your actual cost and the price on 31 January 2018 (capped at the sale price). Gains up to that date stay untaxed. Is STT deductible from my capital gains?No. STT is not a deductible expense for capital gains on listed shares. Brokerage and similar transfer costs are, as part of the cost of the transaction. Do I pay tax every time a strategy rebalances?You pay tax when you sell at a gain, and every rebalance sells something. The gains and losses across the year are netted when you file. Short term gains are taxed at 20%, long term gains above ₹1.25 lakh at 12.5%. Your contract notes and your broker's capital gains statement are the records you need. What does Orders, Costs & Taxation cover?How to actually place a trade, what it costs you in full, and how the government taxes your gains. The numbers most investors ignore until they hurt. It works through Order types, how you actually buy and sell, The full cost of a trade, Capital gains taxation, how your profits are taxed, How costs affect your real returns and more. It is module 1.5 of Path 1, Market Foundations, about 12 minutes of reading, free. TTry it ## Orders, Costs & Taxation, in numbers. Segment-wise Securities Transaction Tax and key charges Your numbers, the module's formula, nothing stored. Calculator ### STT and Trade Cost Lookup Securities Transaction Tax differs by segment and side. This lookup shows STT plus the typical extras for any segment in Indian equity. SegmentEquity Delivery (CNC)Equity Intraday (MIS)Equity FuturesEquity OptionsSideBuySellTrade value (INR) [Full calculator: Trade cost calculator](/learn/tools/trade-cost-calculator)[Full calculator: LTCG and STCG on equity](/learn/tools/capital-gains-tax-calculator) AApply it on RupeeCase ## Nifty 50 Equal Weight All 50 Nifty names, equal weight. The simplest card on the lineup. An index built on the rules this path teaches, entry level, lowest risk band on the lineup (resolved by the patcher at build time), held stock by stock in your own demat. Risk band: Moderate. [See the strategy](/strategies/nifty-50-equal-weight)[Sign up for RupeeCase](https://invest.rupeecase.com/signup?strategy=nifty-50-equal-weight) [CAGR16.4%Sharpe1.13Max DD−15.7%Minimum249000Model, back tested, as of 27 Apr 2026. Not client returns, not a promise.](/strategies/nifty-50-equal-weight) QQuick check ## 10 questions, 7 to pass. Pick an answer and the explanation appears. Your result stays on this device and counts towards the Path 01 certificate. 01Path test ## 30 questions. 21 correct earns the certificate. This assessment covers everything in Path 1: Market Foundations, how Indian markets work, reading stock data, Nifty indices and benchmarks, reading financial statements, and the real cost of investing including tax. Questions cover modules 1.1 to 1.5, in a shuffled order, with no timer. Your score stays on this device. * **30**questions * **21**to pass (70%) * **5**modules covered Start the testPass the 5 module quizzes too if you want every stop of the path ticked. Passed ### Certificate ID Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify)Retake the test [All your certificates, and the master certificate](/learn/certificates) CCheck yourself ## Path 01 so far. Your quick check results on this device, stop by stop. 1. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) 2. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) 3. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) 4. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) 5. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) 6. [TPath test, 30 questionsNot yet](/learn/path-1/module-1-5-orders-costs-taxation#pathTestSection) Explore next ## Put the module to work. * [Free module 2.1Why Rules Beat Gut Feeling9 min read](/learn/path-2/module-2-1-why-rules-beat-gut-feeling) * [CalculatorTrade cost calculatorFree, with the formula and a worked example](/learn/tools/trade-cost-calculator) * [CalculatorLTCG and STCG on equityFree, with the formula and a worked example](/learn/tools/capital-gains-tax-calculator) * [StrategyNifty 50 Equal Weight strategyNifty 50, 50 stocks, every 4 weeks](/strategies/nifty-50-equal-weight) * [Learn guideIndian Stock Markets Explained: NSEA pillar guide across the paths](/learn/indian-markets) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera SSources ## Where the figures come from. 1. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 2. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 3. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 4. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 5. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 6. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) 7. [RupeeCase pricing: 0.2% of traded value per rebalance](https://www.rupeecase.com/pricing) GTerms ## 9 terms from this module. Market OrderBuy or sell immediately at the best available price. Guaranteed execution, no price control. Best for liquid stocks. Limit OrderBuy or sell only at a specified price or better. Price control, but no execution guarantee if the market never reaches your price. [STT](/learn/glossary#stt)Securities Transaction Tax, 0.1% on both buy and sell for equity delivery. Non-negotiable government tax paid by all investors. [STCG](/learn/glossary#stcg)Short-Term Capital Gains, profit from selling equity held 12 months or less. Taxed at 20% from Budget 2024. [LTCG](/learn/glossary#ltcg)Long-Term Capital Gains, profit from equity held more than 12 months. Taxed at 12.5% with ₹1.25 lakh annual exemption, from Budget 2024. [Slippage](/learn/glossary#slippage)The difference between the expected trade price and the actual executed price. Higher in illiquid stocks and in fast markets. Tax Loss HarvestingSelling positions at a loss to offset capital gains, reducing tax liability. Short-term losses can offset both STCG and LTCG. Losses carry forward 8 years. Round trip costTotal cost of buying and then selling a position: brokerage on both sides plus STT, exchange and SEBI fees, GST, stamp duty and the depository charge. About 0.24% of the amount in statutory charges on a delivery trade, before brokerage and slippage. DP chargeA fixed fee per stock per day when shares leave your demat on a sale, usually ₹15 to ₹20 including GST. Painful on small sells. [All 91 terms in the glossary](/learn/glossary) [From the podcast archiveEP41: Sell The Rally. Wait For The Base. Long Gamma DayThe Tanmay Edge, 18 May 2026, graded 1/5](/podcast/episodes/2026-05-18)[Pillar guideIndian Markets14 modules across paths 1, 6](/learn/indian-markets) Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.