Calculate the stamp duty payable on a transfer of shares of an Indian company (Form SH-4) under the Indian Stamp Act, 1899, as amended with effect from 1 July 2020. Enter the number of shares and the transfer price per share to get the duty instantly.
Share transfer details
Use the actual consideration agreed in the transfer deed (Form SH-4). For gifts or transmission, the duty is nil.
Stamp duty payable
0.015% of consideration, rounded up
Stamp duty at 0.015% of the consideration, rounded up to the next rupee. Statutory liability to pay is on the transferor (seller).
How share transfer stamp duty is calculated
Since 1 July 2020, the stamp duty on transfer of shares and other securities is governed by the uniform rates in Schedule I of the Indian Stamp Act, 1899 (inserted by the Finance Act, 2019). These rates apply across every State and Union Territory, so a single rate is used wherever the company is registered.
| Instrument | Stamp duty rate |
|---|---|
| Transfer of shares / securities (delivery basis) | 0.015% of consideration |
| Transfer of shares / securities (non-delivery basis) | 0.003% of consideration |
| Issue of shares / securities (other than debentures) | 0.005% |
| Gift of shares (no consideration) | Nil |
| Transmission on death | Nil |
For an ordinary off-market transfer of shares using Form SH-4 the applicable rate is 0.015% of the consideration shown in the transfer deed. The duty is computed on the consideration amount, not on the face value or any income-tax fair market value, and is rounded up to the next whole rupee.
Important: the old 0.25% rate no longer applies
Before 1 July 2020, Article 62 of Schedule I charged 0.25% (25 paise for every ₹100) on a transfer of shares. That article was omitted by the Finance Act, 2019 amendment. The rate for a transfer of shares on delivery basis is now 0.015%, whether the transfer is in dematerialised form (collected by the depository or stock exchange) or in physical form via Form SH-4 (collected by the Central Government). Several websites still quote the old 0.25% figure for physical transfers; this calculator uses the current 0.015% rate.
Who pays and how
The statutory liability to pay the stamp duty on a transfer of shares is on the transferor (seller), although parties often agree otherwise commercially. A company will not register the transfer unless the SH-4 is duly stamped, so the buyer also has a practical interest in compliance.
- The duty must be paid before or at the time of executing the transfer deed (Section 17 of the Indian Stamp Act).
- It can be paid by affixing share transfer stamps, by franking, or through e-stamping (for example, the SHCIL e-stamp portal, or your State’s e-payment system such as GRAS in Maharashtra).
- The stamped, executed SH-4 and the share certificate are then lodged with the company for registration of the transfer.
When no stamp duty is payable
- Gift of shares: a genuine gift has no consideration, so no stamp duty is charged on the transfer (note that income-tax provisions such as Section 56(2)(x) may still apply to the recipient — that is a separate matter).
- Transmission of shares on death: transmission happens by operation of law on the death of a holder; it is not a transfer for consideration and attracts no stamp duty.
- Government securities are charged at nil.
Worked example
Transfer of 10,000 unlisted equity shares at ₹100 each (off-market, Form SH-4):
Consideration = 10,000 × ₹100 = ₹10,00,000
Stamp duty = 0.015% × ₹10,00,000 = ₹150
The transferor pays ₹150 in stamp duty on the SH-4 before lodging it with the company.
Frequently asked questions
What is the stamp duty rate on transfer of shares in India?
Is share transfer stamp duty 0.25% or 0.015%?
What is the base for calculating the duty — face value or consideration?
Who has to pay the stamp duty on a share transfer?
Is stamp duty payable on a gift of shares or on transmission on death?
How is the stamp duty paid on Form SH-4?
Built & reviewed by a practising Chartered Accountant. Rates reflect the Indian Stamp Act, 1899 as amended with effect from 1 July 2020.
This calculator and the information here are for general educational purposes only and do not constitute professional, legal, or tax advice. Stamp duty law and procedure can change and may depend on the specific facts. Please verify the current position and consult a qualified professional before acting. See our disclaimer.
Related stamp duty calculators
All stamp duty calculators · LLP Agreement · Partnership Deed · Debenture
After paying the transfer stamp duty, issue the certificate with our free Share Certificate (SH-1) generator — 3 designs, print-ready PDF. Need the transfer deed itself? Use the Share Transfer Form (SH-4) generator.