STT stands for Securities Transaction Tax. STT is imposed every time you buy or sell a security. It differs for various types of securities such as equities, derivatives (futures and options), bonds, debentures and mutual funds etc.
Securities Transaction Tax is not imposed by your broker. as a matter of fact rate of STT will be decided by Government and modified from time to time if necessary.
|Taxable securities transaction||Rate of STT||Person responsible to pay STT||Value on which STT is required to be paid|
|Delivery based purchase of equity share||0.1%||Purchaser||Price at which equity share is purchased*|
|Delivery based sale of an equity share||0.1%||Seller||Price at which equity share is sold*|
|Derivative – Sale of an option in securities||0.017%||Seller||Option premium|
|Derivative – Sale of an option in securities where option is exercised||0.125%||Purchaser||Settlement price|
|Derivative – Sale of futures in securities||0.01%||Seller||Price at which such futures is traded|