contract note meaning in stock market

A contract note is the digitally signed, itemised legal record of every trade your broker executed for you that day, emailed to you by end of day. It lists each individual fill with its time, quantity and rate, then every charge — brokerage, STT, exchange and SEBI fees, stamp duty and GST — down to the net amount that actually leaves or reaches your bank. It is the document the exchange grievance process asks for in any dispute with a broker.

the legal record of an executed trade that a broker must send by end of day is called the

The contract note. It is the itemised, digitally signed record of that day’s trades, and unlike the app’s summary screen it shows each separate fill and every charge line, which is what makes it the evidence in any dispute about what was executed and at what price.

why does my contract note show a different price than my broker app

Because the app displays one weighted average price while the contract note shows every individual fill plus all the charges. A single market order for 500 shares can execute at four different prices as it walks up the order book, and the note lists each one separately. On top of that, brokerage, STT, stamp duty, exchange fees and GST are added, so the net obligation is always worse than the clean average on screen.

what is STT charged on delivery trades in India

Securities Transaction Tax on delivery equity trades is 0.1% of turnover on the buy side and 0.1% on the sell side. It is charged on the value traded, not on profit, so a loss-making sale pays exactly the same STT as a profitable one. Stamp duty works the same way on the buy side, which is why trade frequency is penalised directly in India regardless of the outcome.

which statement should I use for tax filing — app dashboard or broker P&L

The broker P&L statement, not the app dashboard. The P&L statement splits realised from unrealised gains and short-term from long-term holding periods, which is the form the return actually needs, while the app dashboard shows a live portfolio value that resets when you sell. It also treats every SIP instalment as the separate purchase it is, with its own date and cost — treating a multi-year SIP as one buy is the most common filing error.

Reading a contract note and your P&L statement

Your app shows a tidy "Avg. price" and a green or red number. The contract note emailed the same evening is the legal document, and it is where the difference between what you think you paid and what you actually paid becomes visible.

Think of it like this

Dukaan ka bill aur zubaani rate

The shopkeeper says "₹500 le lena". The printed bill says ₹500 plus GST plus delivery. Both are true; only one is the record you would take to a consumer forum.

In the market

The app price is the spoken rate. The contract note is the bill — itemised, timestamped, and the document that settles any dispute about what happened.

What is on it

Line	What it is	Why it matters
Order and trade time	When it actually executed	Settles disputes about a fill you did not expect
Quantity and rate	Each individual fill	A single order can fill at several prices
Brokerage	What the broker charged	Check it matches the plan you signed up for
STT	Securities Transaction Tax	Charged on turnover, whether or not you profited
Exchange and SEBI charges	Turnover-based fees	Small individually, not in aggregate
Stamp duty	State levy on the buy side	Varies; charged on purchase value
GST	18% on brokerage and exchange fees	A tax on the fees, not on the trade
Net obligation	What actually leaves or reaches your bank	The only number that is real

Loading interactive demo…

Itemise a round trip and compare it with what the app showed you. The gap is what the contract note discloses.

Why one order shows several prices

Worked example

A single market order, four fills

A buy order for 500 shares

Fill 1Whatever was resting at the touch120 at ₹482.10

Fill 2The next level up180 at ₹482.45

Fill 3And the next150 at ₹482.80

Fill 4The last of the size50 at ₹483.20

Weighted averageWhat the app displays as one clean number₹482.61

What the note showsWhich is how you notice slippage happeningAll four, separately

The app is not lying — it averages. But only the contract note shows you that a market order walked four levels up the book, which is the information you need to decide whether to use limit orders in that name.

The P&L statement, and the number tax uses

Most brokers provide an annual P&L statement with realised and unrealised gains split, and short-term separated from long-term. This is the document to use at filing time — not the app dashboard.

Two different numbers

What the app shows

Current portfolio value and unrealised gain
Often excludes charges from the cost basis
Resets when you sell
Useful for monitoring, not for filing

What tax needs

Realised gains only, by holding period
Cost including charges where permitted
Each SIP instalment as its own purchase
Available in the broker P&L statement

Check yourself

You sell shares at a loss. Which charges still apply?

Simple bhasha mein

Zubaani rate aur chhapa hua bill

Dukaandaar bolta hai "₹500 le lena", bill aata hai ₹500 plus GST plus delivery. Dono sach hain — par jhagda hone pe bill hi chalta hai. App ka price zubaani rate hai, contract note asli bill. Aur usme dikhta hai ki STT nuksaan wale sauda pe bhi lagta hai.

What to remember

The contract note is the legal record; the app price is a convenience.
STT and stamp duty are charged on turnover, so losing trades pay them too.
One order can fill at several prices — the note shows each, which reveals slippage.
Use the broker P&L statement at filing time, not the app dashboard.
Every SIP instalment is a separate purchase with its own holding period.

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Common questions

Short, direct answers to what people ask about this topic.

contract note meaning in stock market: A contract note is the digitally signed, itemised legal record of every trade your broker executed for you that day, emailed to you by end of day. It lists each individual fill with its time, quantity and rate, then every charge — brokerage, STT, exchange and SEBI fees, stamp duty and GST — down to the net amount that actually leaves or reaches your bank. It is the document the exchange grievance process asks for in any dispute with a broker.
the legal record of an executed trade that a broker must send by end of day is called the: The contract note. It is the itemised, digitally signed record of that day’s trades, and unlike the app’s summary screen it shows each separate fill and every charge line, which is what makes it the evidence in any dispute about what was executed and at what price.
why does my contract note show a different price than my broker app: Because the app displays one weighted average price while the contract note shows every individual fill plus all the charges. A single market order for 500 shares can execute at four different prices as it walks up the order book, and the note lists each one separately. On top of that, brokerage, STT, stamp duty, exchange fees and GST are added, so the net obligation is always worse than the clean average on screen.
what is STT charged on delivery trades in India: Securities Transaction Tax on delivery equity trades is 0.1% of turnover on the buy side and 0.1% on the sell side. It is charged on the value traded, not on profit, so a loss-making sale pays exactly the same STT as a profitable one. Stamp duty works the same way on the buy side, which is why trade frequency is penalised directly in India regardless of the outcome.
which statement should I use for tax filing — app dashboard or broker P&L: The broker P&L statement, not the app dashboard. The P&L statement splits realised from unrealised gains and short-term from long-term holding periods, which is the form the return actually needs, while the app dashboard shows a live portfolio value that resets when you sell. It also treats every SIP instalment as the separate purchase it is, with its own date and cost — treating a multi-year SIP as one buy is the most common filing error.