Glossary
What is Contract Note? Meaning, Example & Why It Matters
A legal document your broker sends after each trading day listing every trade, its price and all charges.
A contract note is the official record of the trades you executed on a given day. Brokers must send it to you, usually by email, shortly after the trading day ends. It lists each order with time, quantity and price, along with brokerage, STT, exchange charges, SEBI fees, stamp duty, GST and the net amount payable or receivable.
Why Contract Note matters to you
The contract note is the most reliable source for what a trade actually cost you. App screens and estimates can round figures or leave out charges, but the contract note is the legally binding document. It is also useful evidence if you ever need to raise a dispute with your broker or the exchange.
Reading a contract note can seem intimidating at first, but the layout is fairly standard. Look for the summary section, which totals all charges for the day. Compare it with what you expected based on your broker's tariff. Small differences usually come from statutory charges you may not have included.
Practical tip: keep contract notes for your records, as they help with tax filing and audits. If you notice a trade you did not place, or charges that do not match the published tariff, raise it with your broker immediately and escalate to the exchange if it is not resolved.
See it in rupees: every charge and tax on a real trade, at every broker. Open the brokerage calculator
Related terms
- GlossaryBrokerage
The fee a stock broker charges you for executing a buy or sell order on your behalf.
- GlossarySTT (Securities Transaction Tax)
A tax collected by the government on the value of securities you buy or sell on a recognised stock exchange.
- GlossaryGST on Brokerage
Goods and Services Tax applied to brokerage and certain other trading charges, but not to STT or stamp duty.
- GlossaryDP Charges
Fees charged by the depository and your depository participant when securities are debited from your demat account.
Frequently asked questions
When will I receive my contract note?
Brokers typically send contract notes by email shortly after the end of each trading day on which you traded.
What if I find a trade I did not place?
Contact your broker immediately and keep a written record. If the issue is not resolved, you can escalate to the exchange or SEBI's complaint system.
Do I need contract notes for tax filing?
They are very helpful for calculating gains and expenses accurately. Many brokers also provide a tax P&L report based on them.