How to Calculate Net Profit on Indian Share Trading?



If you have the DEMAT  account, you can buy and sell the shares of companies who are listed in NSE and BSE. Why are you trading the shares. Answer is simple to earn the net profit. If net profit will be in negative, it will be net loss.

Forget all other business expenses, we will first focus to expenses relating to buy and selling of shares and in your personal trading, it will be your net profit. If you are doing this business, you can deduct your all operating expenses from it for calculating the net profit.

Following is the Simple Formula 



Net Profit on Share Trading in India =  { Bought Share at market price +Brokerage 0.5% on buying + ( GST 18% on brokerage + Security transaction Tax 1% or brokerage + Stamp Rs. 1 ) } - { Sale of Shares at market price - (  Brokerage 0.5% on buying + ( GST 18% on brokerage + Security transaction Tax 1% or brokerage + Stamp Rs. 1 + STT Rs. 1 } 

Now, I have explain it with Example

For example, you have bought PNB Shares, Sail company shares and Canera bank shares at Market Price ( I am showing total market price of these shares ) = Rs. 539.50 on 1st Jan 2019

On 2nd MAY, you saw the boom in the market price of your shares and you sold all at market price of Rs. 574.50

Now its Net Profit which you have earned

First of all bought share's market value will increase by brokerage of brokering agent of your DEMAT Account with 0.5%

539.5 X 0.5% = Rs. 2.69

Now, we will also add the GST on brokerage because broker is giving you service and also deduct gst from your account when you buy

Rs. 2.69 X 18% = Rs. 0.48

You will also pay the Security transaction tax on brokerage 1% = Rs. 2.69 X1% = Rs. 0.02

You will also pay the stamp charges = Rs. 1

Your total cost on buying these shares will be = Rs. 539.5 + Rs. 2.69 + Rs. 0.48 + Rs. 0.02 + Rs. 1

= Rs. 543.69

You can find this information in your DMAT account's ledger balance > particular  of bought share > click for more details

Now, when you will sell, you will get less amount because you have to pay brokerage and other charges.

Total sale value at market rate = Rs. 574.5
Less brokerage 0.5% = 2.88

Less GST on brokerage 18% on Rs. 2.88 = 0.5184

Less Security transaction charges = 1% on brokerage = 0.02

================================================

Net sale value = Rs. 571.08

Less stamp = Rs. 1

Less STT = 1
==================================================

Net Sale value after all expenses of DEMAT = Rs. 569.08

=================================================

Net Profit on Sale of Indian Shares ( Trading ) = 569.08 - 543.69 = Rs. 25.39

Important Update on 8/5/2019

On every company's share, you will sell, you have to pay DP Charges. Full form of Depository Participant charges which is Rs. 21 for per company sale of shares + GST on it.

In my example, three company shares sold, it means 

( 21  + GST) X 3 = 74.34

Now, net profit will be in minus or it is net loss = Rs. 25.39 - 74.34 = 48.95

Related Content



Image by Stefan Schweihofer from Pixabay

COMMENTS

Comments on this Website
https://www.krantikari.org/2015/09/journal-entries-ebook.html
.

$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-spend-money-intelligently.html$l=hide$c=9$d=

$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-buy-gold-from-paytm.html$l=hide$c=6$d=no

$type=three$a=hide$cm=hide$s=hide$show=/2013/06/tdr-vs-stdr.html$l=hide$c=30$d=no

$type=three$a=hide$cm=hide$s=hide$show=/2019/06/10-steps-to-become-better-investor.html$l=hide

Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: How to Calculate Net Profit on Indian Share Trading?
How to Calculate Net Profit on Indian Share Trading?
https://4.bp.blogspot.com/-WyMIRzm5CXg/XMxQa_7-JtI/AAAAAAAAWaw/2jaLIdKsQA8erRg9ViQ_J_pXB72eDgs8wCLcBGAs/s640/calculator-3822923_1280.jpg
https://4.bp.blogspot.com/-WyMIRzm5CXg/XMxQa_7-JtI/AAAAAAAAWaw/2jaLIdKsQA8erRg9ViQ_J_pXB72eDgs8wCLcBGAs/s72-c/calculator-3822923_1280.jpg
Accounting Education
https://www.svtuition.org/2019/05/how-to-calculate-net-profit-on-indian.html
https://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2019/05/how-to-calculate-net-profit-on-indian.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock