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A contract note is a proof of the trades that have been made very successfully on that particular day.
It usually comprises the things that the person did from buying to selling of the trades.

It serves as a legal trade or proof among the individual.
1. Each contract note is made up of the following components: 2. Order & Trade Number

3. Order & Trade Time

4. Name and Symbol of the Securities Traded

5. Action Carried Out: Buy or Sell

6. Type of Trade: Delivery or Intraday

7. Quantity & Price of the Trade

8. Charges Levied: Brokerage & Other Statutory Charges Net Amount Receivable / Payable

Angel one usually sends a contract note for all transactions that took place on the stock exchange, you can also download it from their site. We can say that the Contract Note is legal for every platform or proof provided to a stockbroker.
Again, in the Angle one contract note or in any of the contract notes it can be defined as the confirmation of trade, done on a particular day on behalf of a client on a stock exchange. It is generally sent by End of day within the mail. Additionally, this document is available in a digitally signed electronic format.

Now let us see the way through which you can download the Contract note from the site of Angle one:
1. Visit the site.
2. Login you Id.
3. Click on the proceed option.
4. You will land on the portfolio page.
5. Select ”transactional Report”.
6. Next select the “contract notes” from the drop-down list.
7. Click on the GO option.

Contract notes are the most appropriate legal documents available to investors in the stock market while trading for the stocks. It keeps track of all the transactions at one place along with profit and loss info. Also, in this kind of document, the availability and legality of critical information related to a transaction make it essential for an investor/trader to properly understand the market.

The contract note is the legal record of any stock or trade made by a stockbroker on a stock exchange market. It confirms the trade that was conducted on a particular day, on the investor’s behalf, performed on a stock exchange (BSE / NSE). You receive this documentation from your broker stating the details of shares that were bought or sold through him. The documents may also be available in electronic format with a digital signature.

Now further moving on to the terms related to a contract note.
1. Order No. & Trade No.:
This column shows the unique numbers given by Exchanges to specific Orders and Trades respectively.

2. Order Time:
The exact time at which an investor’s Order was placed on the Exchange is done.

3. Trade Time:
The time at which an investor’s Trade was successfully executed on the Exchange falls usually comes under this.
Example: Suppose, the current price of Reliance Equity is ₹ 2,000 (Last traded price). You placed a Buy Order (Limit Price) for ₹ 1,995 at 12:01:05 am. Your Order got executed successfully at 12:30:27 am. In this case – Your Order Time is 12:01:05 am | Your Trade Time is 12:30:27 am.

4. Securities/Contract Description:
Name of the stock/contract which was traded.

5. Buy/Sell:
Refers to the type of order placed by an investor.

6. Quantity:
The number of stocks which were invested by the investor. Positive numbers mean Buy Orders whereas the negative (-) numbers mean Sell Orders.

7. Gross Rate per Unit:
The price at which the stock was executed or bought by the investor.

8. Brokerage per Unit:
Brokerage charged on every trade usually 2% or rupee 20 whichever is less in ANGLE ONE
Exchange: This column shows the Exchange and segments that have been traded.

9. Pay In/Pay Out Obligation:
A positive (+) amount shows the amount that has been received by you which has been credited within a day or two.
A negative (–) amount shows the amount that has to be paid by you.

10. Securities Transaction Tax (STT):
This refers to tax that is made on every trade within the Exchange which is taken by the broker and given to the Exchange. STT is taken on both buying and selling on delivery, and on selling on Intraday and also within F&O.

Now let us see what is the taxable value of supply i.e.
Taxable Value of Supply = Total brokerage cost + Exchange Transaction Charges + SEBI Turnover Fees.

1. Total Brokerage– Total Brokerage charges taken as per your Brokerage Plan

2. Exchange Transaction Charges– This fee is taken by Exchanges like the NSE, BSE, MCX, and NCDEX in terms of enabling trading.

3. SEBI Turnover Fees– The Securities and Exchange Board of India (SEBI) charges fees on securities transactions for regulating the market.

CGST – Central GST
SGST – State GST

If you are from Maharashtra, CGST + SGST will be levied. For the rest of the country, IGST (Inter-state GST)/UGST (Union Territory GST) will be levied.
Hence this is the basic contract node overview with few terms given. Usually, the contract node is provided to you with the mail.
Also take care the amount that you are opted to pay has to be given to time otherwise the interest or taxes will be applicable on that.

Since the number of investors and people in the stock market are increasing rapidly, chances of fraud and difficulties are also growing rapidly day by day. SEBI has taken several ways to safeguard the common investor interests. One of the very first moves in that direction is the digital contract note showing the price, brokerage, service tax, and STT in the prescribed format and way.

Also, by just looking at this contract letter document, an investor can be confident that the order he\she has put through his\her broker was executed. This paper is a condition that can be used as a proof to the point that whether the broker made your trade or not and can be used as a measure to fight against him in a case. You should always rely on your broker delivery of the contract notes.

The basic fundamental use of the contract note is:
1. Cost of total brokerage charged.
2. Calculation of capital gains.
3. Legal Proof in the case of conflicts or disagreement with the broker.
4. Calculation of data for filing the income tax return
5. Cross-examining genuineness and correctness of the transactions.
6. A contract node gives you a kind of relief that you are trading safely.
7. A person should keep a record of all the contract notes so that anytime he\she may not get into trouble.

Conclusion- Angel one sends you a contract note at the end of the day for all the trades done by you on that particular day through your registered email id. or you can find it in your app account. it is a legal proof and confirmation of trade done by you.

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