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Indian Stamp Act · As Amended 2020 · Form SH-4

Share Transfer Stamp Duty Calculator

Work out the stamp duty payable on a transfer of shares — a uniform 0.015% of the consideration or market value, whichever is higher.

🧾 How do you know the value?
Input method
📊 Shares & price
Number of shares Quantity being transferred
#
Price per share Sale price or fair value
Stamp duty on transfer of shares via Form SH-4 is 0.015% of the consideration or market value (whichever is higher), a uniform rate under the Indian Stamp Act as amended in 2020. It is paid by franking or e-stamp before the transfer is registered by the company.

Stamp duty computation

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Disclaimer: Indicative estimate based on the uniform 0.015% rate for transfer of shares under the Indian Stamp Act as amended 2020. Actual duty may vary for debentures, dematerialised transfers routed through a depository, or state-specific instruments. Verify with a professional before payment.

Stamp duty on share transfer — the essentials

When shares held in physical form are transferred, a Form SH-4 (share transfer deed) is executed and stamp duty is paid on it. Since the 2020 amendment to the Indian Stamp Act, the rate is a single, uniform 0.015% across India, charged on the consideration paid or the market value of the shares, whichever is higher.

0.015%
Uniform stamp duty rate on transfer of shares
SH-4
Share transfer deed on which duty is affixed
Higher of
Consideration or market value — duty is on the greater
2020
Amendment year that made the rate uniform nationwide

How the duty is calculated

The maths is simple: take the higher of the sale consideration or the fair market value of the shares, then multiply by 0.015% (i.e. ₹15 per ₹1,00,000). Here are a few worked examples.

₹10,00,000 consideration
10,000 shares × ₹100₹10,00,000
Rate0.015%
Stamp duty₹150
₹50,00,000 consideration
50,000 shares × ₹100₹50,00,000
Rate0.015%
Stamp duty₹750
₹1,00,00,000 consideration
1,00,000 shares × ₹100₹1,00,00,000
Rate0.015%
Stamp duty₹1,500
Example: 10,000 shares × ₹100 = ₹10,00,000 consideration → stamp duty at 0.015% = ₹150.

Key terms explained

Form SH-4

The prescribed share transfer deed used to transfer physical shares of a company. It records the transferor, transferee, number of shares and consideration, and is the instrument on which stamp duty is affixed.

Consideration vs market value

Duty is charged on the higher of the two — the price actually paid, or the fair market value of the shares. This prevents under-valuation to save duty on connected-party transfers.

Uniform 0.015% rate

Before 2020, stamp duty on share transfer varied by state. The Indian Stamp Act amendment 2020 fixed a single rate of 0.015% of value nationwide for a transfer of shares.

Franking / e-stamp

The duty is paid by franking the SH-4 at an authorised bank or via e-stamp, before the company registers the transfer and issues an endorsed share certificate.

Frequently Asked Questions
What stamp duty applies to a share transfer?

A uniform 0.015% of the consideration, or of the market value where the transfer is otherwise than for consideration, on the instrument of transfer in Form SH-4. The rate is the same across states following the amendments to the Indian Stamp Act.

Who pays the stamp duty?

For physical transfers, the transferor bears it in the usual case, though the parties can agree otherwise. For transfers in demat form, the duty is collected by the depository at the time of the transaction.

How is the duty paid on a physical transfer?

By affixing share transfer stamps or through the state's e-stamping facility, on the SH-4 before it is executed and delivered to the company for registration.

Is stamp duty payable on a gift or transmission of shares?

A gift of shares is chargeable on the market value. Transmission on the death of a holder is not a transfer for stamp duty purposes and no SH-4 is executed — the legal heir applies with the death certificate and succession documents.

What does the company do after the transfer?

Register the transfer within the time prescribed, endorse the share certificate or issue a new one within one month, update the register of members, and reflect the change in the next annual return.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.