Finance
STT (Securities Transaction Tax) — small but adds up
Equity delivery 0.1%, intraday 0.025%, F&O options 0.0625%, futures 0.0125%. STT is non-refundable but is included in sale consideration for capital gains.
10 May 2026 · 2 min read
Quick frame: STT (Securities Transaction Tax) is mandatory at every equity / F&O trade. 0.1% on equity delivery (both sides), 0.025% on intraday (sell only), 0.0625% on F&O option premiums, 0.0125% on futures contract value. STT is non-refundable. For active traders, it adds 0.05-0.2% to total trading cost.
What is STT?
Section 98 of the Finance Act 2004 introduced STT. The exchange (NSE/BSE) collects on every trade and remits to the govt. Visible on your contract note.
Pre-STT era: capital gains tax was higher. Govt introduced STT in exchange for:
- LTCG exemption on listed equity (held > 1 year, until 2018)
- STCG at flat 15% (now 20%) instead of slab rate
So STT is a "tax in exchange for lower CG tax."
Current rates (post-2024)
| Instrument | Rate | Charged on |
|---|---|---|
| Equity delivery | 0.1% | Both buy & sell |
| Equity intraday | 0.025% | Sell only |
| F&O options | 0.0625% | Sell premium |
| F&O futures | 0.0125% | Sell value |
| Mutual fund redemption | 0.001% | Equity-oriented |
Why options STT is so different
Options STT is calculated on PREMIUM (not strike price × lot size). Buying a call option premium ₹100 with lot 50 = ₹5,000 trade value, but STT is on ₹5,000 × 0.0625% = ₹3.13. Very low.
Compare to futures STT: 0.0125% on contract value. A Nifty futures contract worth ₹15 lakh = STT of ₹187.50.
Options sellers pay much less STT than futures traders.
Total trading cost
For ₹1 lakh equity delivery:
- STT (both sides): ₹200
- Brokerage (Zerodha): ₹0
- Exchange charges: ~₹3.5
- GST 18% on brokerage + exchange: ~₹0.6
- SEBI / stamp duty: ~₹15
- Total: ~₹220 (0.22%)
Use the STT Calculator for any specific trade.
FAQ
Q. Can I claim STT in tax? A. STT paid on the sell side is included in "sale consideration" for capital gains computation, marginally reducing the gain. Indirect benefit.
Q. STT on commodity F&O? A. CTT (Commodity Transaction Tax) instead. 0.01% on agri commodities, 0.05% on non-agri.
Q. STT on IPO allotment? A. None on allotment. STT applies on subsequent secondary market trade.
Q. STT on bonds? A. None. STT only on listed equity and equity-derivative trades.
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STT (Securities Transaction Tax)
0.1% delivery, 0.025% intraday, 0.0625% F&O — exactly.
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