What Is a Contract Note and How to Read It
The contract note is the legal record of your trades and every charge on them. Here’s how to read yours.
On this page
A contract note is the official, legally valid confirmation of the trades you executed through your broker on a given day. It’s issued (usually by email) after market hours and is your primary record for accounting and taxes.
What it contains
- Trade details — each buy/sell: stock, quantity, price, time and order/trade numbers.
- The full cost breakdown — brokerage, STT, exchange transaction charges, GST, stamp duty, SEBI fees and DP charges on sells.
- Net amount — what was actually debited or credited after all charges.
Why it matters
- Verification — check that trades, prices and quantities match what you intended.
- Cost awareness — it reveals the real cost of trading; for active traders these add up fast. Cross-check with the brokerage calculator.
- Tax records — it’s essential for computing capital gains and for your ITR; keep contract notes safely.
- Dispute resolution — being a legal document, it’s your proof in any disagreement.
Reading tips
Focus on the per-trade price vs your expected price (to spot slippage) and the total charges vs your gross P&L — small moves can be eaten up by costs. The digitally signed PDF is the authentic version.
Make a habit of glancing at your contract note after an active day. Education only, not a recommendation.
