Securities Transaction Tax (STT)

Securities Transaction Tax (STT)

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

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