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Securities Transaction Tax (STT) is a tax levied on the buying and/or selling of securities traded on recognised Indian stock exchanges. It applies to equity shares, equity derivatives such as futures and options, and certain other market instruments.
STT is collected by the exchange at the time of the transaction and remitted to the government. For traders and investors, it forms part of the overall transaction cost and is reflected in the contract note.
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STT Rates Table (as on February 2026)
| Order Type | Applicable STT Charge |
|---|---|
| Equity Intraday | 0.025% (₹25 per lakh) on the sell side only |
| Equity Delivery | 0.1% (₹100 per lakh) on both buy or sell sides |
| Options (Premium) | 0.1% of premium on short options (0.15% from 01-04-2026) |
| Options (Exercised) | 0.125% of intrinsic value (0.15% from 01-04-2026) |
| Futures | 0.02% (₹20 per lakh) on the sell side only (0.05% from 01-04-2026) |
*Equity delivery STT is on both sides, while others differ by trade type.
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Example
Equity Intraday Trade
- STT (sell side) = 500 × ₹102.50 × 0.025% = ₹12.81 → ₹13 (rounded)
Equity Delivery Trade
- Buy side STT = 500 × ₹100 × 0.1% = ₹50
- Sell side STT = 500 × ₹105 × 0.1% = ₹52.50 → ₹53 (rounded)
Options—Exercised (Intrinsic Value)
- Lot = 50
- Strike = ₹17,300
- Spot @ expiry = ₹17,350
- Intrinsic Value = (50 × ₹50) = ₹2,500
- STT = 0.125% × ₹2,500 = ₹3.125
Options – Premium (Short Options)
- Premium = ₹60 × 50 = ₹3,000
- STT = 0.1% × ₹3,000 = ₹3
Futures Trade
- Sell lot value = ₹7,50,000
- STT = 0.02% × ₹7,50,000 = ₹150
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Revised STT Charges (effective April 1, 2026)
The Ministry of Finance has announced revised Securities Transaction Tax rates for derivatives, effective April 1, 2026. The changes apply to futures and options:
| Financial Derivatives | Old Rate | New Rate |
|---|---|---|
| Futures | 0.02% | 0.05% |
| Options (Premium) | 0.10% | 0.15% |
| Options (Exercise) | 0.125% | 0.15% |
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Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
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