Securities Transaction Tax (STT) – the biggest tax applied on your trading

This IPO News guide/article covers “Securities Transaction Tax (STT) – the biggest tax applied on your trading”. The page is organized around stt charges for trading in different segments in india, key points to be noted about stt and ctt:, save yourself from the stt trap in options, zerodha trade@20, frequently asked questions. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

• STT Charges for trading in different segments in India
• Key Points to be noted about STT and CTT:
• Save Yourself from the STT Trap in Options
• Zerodha Trade@20
• Frequently Asked Questions
• 1. How to reduce STT charges in option trading?−
• 2. Is STT charges differ for different brokers?+
• 3. How to calculate STT on any trade?+
• Compare Stock Brokers Side-by-Side

Key Facts

• India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
• Your contract note specifically shows each and individual charges like STT, Exchange Transaction Charges, SEBI Charges, Service Tax (Brokerage + Exchange Transaction Charges), Stamp Duty along with the brokerage.
• STT on Equity Delivery Trades: Rs 10,000 per Crore or 0.1% per volume on buy and sell both sides.
• STT on Equity Intraday Trades: Rs 2,500 per Crore or 0.025% per volume on sell side only and is valued at the actual traded price.
• STT on Equity Futures Trades: Rs 1,000 per Crore or 0.01% per volume on sell side only and is valued at the actual traded price.
• STT on Equity Options Trades: Rs 5,000 per Crore or 0.05% on sell side only on premium value.
• STT on Exercised Options on Expiry: Equity Options on Exercised and Assigned Trades – Rs 12,500 per Crore or 0.125% on notional values of trades.
• Since STT is paid on transactions, capital gains on securities transactions get charged at a preferential rate. In case of short term capital gains, a tax of 15% is applicable.
• Assume, you have bought Nifty Options of Strike Price 8700 @ Rs 100 per lot. You will not be charged any STT as STT is applicable only on the selling side.
• One Nifty lot is currently 75 units. So, If you sell that position @ Rs 100 itself, then you will be charged Rs 3.75 ((100*75*0.05%) as STT. STT for selling options is 0.05% of the premium amount.
• But, if you carry your option till expiry and your in-the-money option gets exercised, then you will be charged 0.125% STT of the ENTIRE CONTRACT VALUE.
• Instead, had you sold it on the exchange than you would have been charged STT about 0.05% only on premium value.
• Want to start your investment journey? Join India's Pioneer Discount Broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.
• 10 Best Mutual Fund Apps for Investors in 2025

Source record: View original public source ↗