Stamp Duty of 0.005% has become applicable to all Mutual Fund purchases with effect from July 01, 2020 (including lump sum, SIP, STP, switch, dividend reinvestment). Stamp duty will not apply to redemption of Mutual Fund units.
In essence, for a purchase order of Rs 1 Lakh, a nominal amount of 0.005% (Rs 5) will go towards Stamp duty charges. You can also refer to these FAQs by DSP MF for detailed information on applicability of Stamp Duty.
