23 July 2025
Sure! Here’s a quick overview of **sale and purchase of shares using Zerodha**, one of India’s popular online brokerage platforms:
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### 1. **How to Buy Shares on Zerodha**
* **Open a Demat & Trading Account:** You need both a Demat account (to hold shares) and a trading account (to place orders). * **Login to Zerodha Kite:** Use Zerodha’s trading platform (web/mobile app) called Kite. * **Place Buy Order:**
* Select the stock you want to buy. * Choose order type: Market order (buy immediately at current price) or Limit order (buy at a specified price). * Enter quantity and place the order. * **Order Execution:** Once matched, shares are bought and credited to your Demat account.
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### 2. **How to Sell Shares on Zerodha**
* **Login to Kite.** * **Place Sell Order:**
* Select the stock you want to sell from your holdings. * Choose order type (market or limit). * Enter quantity and place order. * **Settlement:** Shares are debited from your Demat account, and proceeds credited to your trading account after settlement.
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### 3. **Important Points**
* **Demat Holding:** All shares bought are held electronically in your Demat account. * **Settlement Cycle:** Trades settle on T+2 basis (trade date plus two working days). * **Charges:** Brokerage, Securities Transaction Tax (STT), GST, and other statutory charges apply. * **Taxation:** Capital gains tax applies on profits from sale of shares. Short-term or long-term rates depend on holding period.
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### 4. **Tax Reporting**
* Zerodha provides you with **consolidated reports** including P\&L statements, which help in filing income tax returns. * You must declare gains/losses from share trading under **capital gains** or **business income** (if trading frequently) as applicable.
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If you want, I can help you with:
* Step-by-step guide for Zerodha trading. * Tax treatment of shares bought/sold via Zerodha. * Sample ledger or tax reports from Zerodha statements.