STT hike on F&O from 1 April 2026: what changed and the extra yearly cost at 20, 100 and 400 trades a month

What the STT hike on F&O changed on 1 April 2026

Securities Transaction Tax (STT) is collected by the exchange through your broker on each taxable trade (see the STT glossary entry for the basics). Budget 2026 raised it on derivatives only. Three lines in the law moved:

• Options sold: 0.15% of the premium. The seller pays. For an option buyer that is the exit sale; for an option writer it is the entry.
• Options exercised: 0.15% of the intrinsic value (settlement price minus strike for a call, strike minus settlement for a put). The buyer who held the option pays.
• Futures sold: 0.05% of the price the future traded at. The seller pays, whether the sale opens or closes the position.

Buying an option or a future carries no STT; an option buyer pays only on the exit sale or if the option is exercised. STT on shares (0.1% on delivery, 0.025% on the intraday sell side) did not change. This was the second F&O increase in 18 months: the rates had already gone up on 1 October 2024, from 0.0625% to 0.1% on options and from 0.0125% to 0.02% on futures. The charges changelog dates both changes alongside the exchange fee changes.

Old and new STT rates on futures and options

Rates from section 98 of the Finance (No. 2) Act 2004 as amended by section 159 of the Finance Act 2026, and NSE circular NSE/FATAX/73524. 'Old' is the rate from 1 Oct 2024 to 31 Mar 2026.

Taxable transaction	Charged on	Paid by	Old	From 1 Apr 2026	Rise
Sale of an option	Premium	Seller	0.1%	0.15%	+50%
Sale of an option, where the option is exercised	Intrinsic value	Buyer (holder)	0.125%	0.15%	+20%
Sale of a future	Traded price	Seller	0.02%	0.05%	+150%
Equity delivery, buy and sell	Trade value	Buyer and seller	0.1%	0.1%	No change
Equity intraday, sell	Trade value	Seller	0.025%	0.025%	No change

Rise is the relative increase in the rate. The value bases (premium, intrinsic price, traded price) are as described in the notes on clauses of the Finance Bill 2026; the payer column is from NSE's circular.

Sources: [1], [5], [2]

“I propose to raise the STT on Futures to 0.05 percent from present 0.02 percent. STT on options premium and exercise of options are both proposed to be raised to 0.15 percent from the present rate of 0.1 percent and 0.125 percent respectively.”

From Budget speech to contract note

1. 1 Feb 2026

   Budget speech announces the rise

   The annexure to the speech gives the aim as a "reasonable course correction in F&O segment" and "additional revenues for the Government".

   Source: [4]

2. 1 Feb 2026

   Finance Bill 2026, clause 143

   The Memorandum says the higher rates "will address issue of disproportionate increase in speculation in futures and options trading" and apply to F&O transactions entered into on or after 1 April 2026.

   Source: [3]

3. 30 Mar 2026

   Finance Act 2026 receives assent

   Published as Act No. 4 of 2026. The STT change is section 159 of the Act, with the same three rates as the Bill.

   Source: [1]

4. 31 Mar 2026

   NSE tells members to charge the new rates

   Circular NSE/FATAX/73524: transactions executed on or after 1 April 2026 pay the revised rates.

   Source: [5]

5. 1 Apr 2026

   New rates appear on F&O contract notes

   Zerodha's support page confirms the change took effect on this date and lists the previous rates.

   Source: [12]

When the new rate applies to your trade

The 1 April 2026 date comes from the Budget Memorandum ("transactions ... entered into on or after" that date) and NSE's circular ("executed on or after"). Section 159 of the Act itself does not print a start date. The test is the date of the taxable sale or exercise, because that is the transaction STT is charged on. We found no official FAQ on positions held across 31 March and 1 April, so in plain terms, our reading is:

• Bought an option before 1 April, sold it after: the exit sale pays 0.15%.
• Wrote (sold) an option before 1 April, bought it back after: STT was paid at the old 0.1% when you sold. The buy-back pays no STT.
• Futures held across the date: whichever leg is the sale pays the rate in force on its trade date.
• Option exercised at an expiry on or after 1 April: 0.15% of intrinsic value.

Brokers did not change base F&O brokerage because of the hike, as far as we could find on official pages. Zerodha's flat ₹20 per order "remains", and the change it announced for 1 April 2026 is about cash collateral, not STT: an extra ₹20 per order only for accounts that miss its 50:50 cash collateral rule by more than ₹5 lakh.

Extra STT per lot since the hike

Nifty option, 1 lot sold at ₹100

+₹3.25

65 units × ₹100 = ₹6,500 premium. STT ₹6.50 → ₹9.75.

Source: [5]

Bank Nifty option, 1 lot sold at ₹250

+₹3.75

30 units × ₹250 = ₹7,500 premium. STT ₹7.50 → ₹11.25.

Source: [8]

Index future, 1 lot worth ₹15 lakh sold

+₹450

STT ₹300 → ₹750 on the sale. Paid once per round trip.

Source: [5]

Nifty option exercised, 40 points in the money

+₹0.65

Intrinsic value 40 × 65 = ₹2,600. STT ₹3.25 → ₹3.90, paid by the buyer.

Source: [11]

Three trader profiles and how we priced them

One "trade" here means one round trip: a buy order and a sell order. Each profile is priced at 20, 100 and 400 round trips a month, then multiplied by 12. The premiums and the futures value are round illustrative numbers, not market prices.

• Option buyer: buys 1 Nifty lot (65 units, the lot size NSE set from January 2026 expiries) at ₹100 and exits at ₹100. ₹6,500 of premium each way.
• Option seller: sells 2 Bank Nifty lots (30 units each) at ₹250 and buys them back at ₹250. ₹15,000 of premium each way.
• Futures trader: 1 index futures lot worth ₹15 lakh each way. That is the minimum value SEBI set for new index contracts, and about one Nifty lot at an index level near 23,077. It is also the size used on our changelog, so the two pages agree.

Exit price equals entry price in every profile, so the cost is not mixed up with profit or loss. Charges other than STT are held at today's rates from Zerodha's charges page: ₹20 per order (futures: 0.03% or ₹20, whichever is lower, so ₹20), NSE transaction charges of 0.03553% on premium and 0.00183% on futures, SEBI's ₹10 per crore, 18% GST on brokerage, exchange and SEBI charges, and stamp duty of 0.003% on option buys and 0.002% on futures buys. Only STT differs between the old and new columns. Yearly figures are rounded to the nearest rupee.

Extra charges in a year at 20, 100 and 400 trades a month

Total charges per year (brokerage, STT, exchange, SEBI, stamp duty, GST) at the old and new STT rates. Trades = round trips. Rounded to the nearest rupee.

Profile	Trades a month	Charges a year, old STT	Charges a year, new STT	Extra a year	Of which brokerage + GST
Nifty option buyer, 1 lot at ₹100	20	₹14,247	₹15,027	+₹780	₹11,328
Nifty option buyer, 1 lot at ₹100	100	₹71,233	₹75,133	+₹3,900	₹56,640
Nifty option buyer, 1 lot at ₹100	400	₹2,84,931	₹3,00,531	+₹15,600	₹2,26,560
Bank Nifty option seller, 2 lots at ₹250	20	₹18,063	₹19,863	+₹1,800	₹11,328
Bank Nifty option seller, 2 lots at ₹250	100	₹90,316	₹99,316	+₹9,000	₹56,640
Bank Nifty option seller, 2 lots at ₹250	400	₹3,61,262	₹3,97,262	+₹36,000	₹2,26,560
Index futures, 1 lot of ₹15 lakh	20	₹1,06,925	₹2,14,925	+₹1,08,000	₹11,328
Index futures, 1 lot of ₹15 lakh	100	₹5,34,626	₹10,74,626	+₹5,40,000	₹56,640
Index futures, 1 lot of ₹15 lakh	400	₹21,38,506	₹42,98,506	+₹21,60,000	₹2,26,560

STT rates from the Finance Act 2026 and NSE/FATAX/73524. Lot sizes from NSE/FAOP/70616. The ₹15 lakh futures size is SEBI's minimum for new index contracts (SEBI/HO/MRD/TPD-1/P/CIR/2024/132). All other rates from Zerodha's charges page as of 13 Oct 2026. 400 futures round trips a month means ₹60 crore sold a month and is shown only to complete the grid.

Sources: [1], [5], [8], [10], [11]

Download this table (CSV)

One index futures round trip, before and after the hike

Buy 1 lot worth ₹15 lakh, sell it at ₹15 lakh. Each line gives the cost today; the note gives the old figure where it differs.

STT, 0.05% of ₹15 lakh soldWas 0.02% = ₹300.00

₹750.00

Brokerage, 2 orders × ₹200.03% would be ₹450 an order, so the ₹20 cap applies

₹40.00

NSE transaction charges, 0.00183% of ₹30 lakh

₹54.90

SEBI fee, ₹10 per crore of ₹30 lakh

₹3.00

GST, 18% of ₹97.90

₹17.62

Stamp duty, 0.002% of ₹15 lakh bought

₹30.00

Total per round trip (was ₹445.52)

₹895.52

Sources: [5], [11], [10]

Option profiles only; a futures round trip (₹895.52) would flatten this scale. Other charges = NSE transaction charges, SEBI fee, GST on both, and stamp duty. Rounded to the nearest paisa.

Brokerage incl. GSTSTTOther charges incl. GST

• Nifty buyer, old₹59.36
• Nifty buyer, new₹62.61
• Bank Nifty seller, old₹75.26
• Bank Nifty seller, new₹82.76

Sources: [5], [11], [8]

STT or brokerage: which line is bigger for you

The answer depends on what you trade, and it decides whether a cheaper broker could make up for the hike.

Futures: STT is now 83.75% of a round trip's charges, up from 67.3%. Brokerage with GST is 5.3%. At 20 round trips a month, a full year of brokerage and its GST comes to ₹11,328, while the STT rise alone is ₹1,08,000. A broker charging nothing at all would cover about a tenth (10.5%) of the increase.

Option buying in small size: brokerage is still the big line. On the 1-lot Nifty trade it is ₹47.20 of ₹62.61, about 75.4%, and STT is 15.6%. The hike added ₹3.25 per round trip, so the yearly rise is modest next to brokerage.

The crossover: with ₹20 per order, options STT becomes bigger than brokerage and its GST once you sell more than about ₹31,467 of premium in one round trip (₹47.20 ÷ 0.15%). Before April it took ₹47,200. Option writers who sell larger size cross that line sooner.

Our F&O charges benchmark compares brokers on the same kind of trade, and the option buying cost per trade page goes deeper on the buyer side.

Break-even exit for the Nifty option buyer

1 lot of 65 bought at ₹100. Break-even is the exit price where the gain on 65 units equals all charges at that exit price (STT and exchange charges rise slightly with the exit price, so it was solved, not just divided).

Premium paid

₹6,500.00

Brokerage and GST on it, 2 orders

₹47.20

Charges at a flat ₹100 exit, old STT

₹59.36

Charges at a flat ₹100 exit, new STT

₹62.61

Break-even exit price, old STT

₹100.91

Break-even exit price, new STTAbout 5 paise per unit higher (0.0506 before rounding)

₹100.97

Points needed to break even (was 0.91)

0.97

Sources: [5], [11], [8]

How break-even points moved for each profile

• Nifty option buyer: from 0.91 to 0.97 points above entry. The extra STT is 0.05% of the exit price, about 5 paise at ₹100.
• Bank Nifty option seller: the premium must now fall from ₹250 to ₹248.62 to break even, up from ₹248.75 (1.38 points, up from 1.25). The extra is 0.05% of the price sold, 12.5 paise at ₹250.
• Index futures trader: from 6.85 to 13.78 points on a lot of 65 units worth ₹15 lakh (charges per round trip divided by 65). Angel One reported a similar move, from about 6 to nearly 13 points, on its own Nifty example of 1 April 2026.

For futures, the hike roughly doubled the move you need just to cover costs. For options, the move is a few paise per unit. To try your own prices, use the options break-even calculator or the STT calculator.

Expiry, exercise and options that expire worthless

Nifty and Bank Nifty options are settled in cash. If you hold a bought option that finishes in the money, it is exercised and you pay 0.15% of its intrinsic value. Since September 2019 the base has been intrinsic value; before that it was the full settlement price, which is where the old "STT trap" on expiry came from.

From October 2024 to March 2026, exercise still cost more than selling: 0.125% against 0.1%. On the 40-point example above, exercise cost ₹3.25 while selling the option at ₹40 just before the close cost ₹2.60. From 1 April 2026 both are 0.15%, so both cost ₹3.90 on the same ₹2,600. The STT reason to square off an in-the-money option before expiry has gone. Your broker's own charges on exercise, if any, still apply.

An option that expires out of the money has no intrinsic value, so exercise STT on it is zero. An option writer whose short option expires pays nothing more; Zerodha notes the 0.15% on the premium was already paid at the sale. Stock options are settled by delivery and carry other charges, which this page does not cover.

What a trader can legitimately do about it

• Know which costs scale with order count and which scale with value

  STT is a percentage of the value sold, so it does not change if the same value is sold in one order or four. Flat brokerage does. Four 1-lot Nifty round trips at ₹100 cost ₹250.44 in charges; one 4-lot round trip costs ₹108.84. STT is ₹39.00 in both. A bigger order is also a bigger risk, so this is a cost fact to weigh, not a sizing rule.

• Log charges with every trade

  Record the STT and total charges next to each trade's P&L so a month's review shows net results. Compare them with your contract note.

• Use the new break-even when you plan a target

  A futures scalp that needed about 7 points to cover costs now needs about 14 on a ₹15 lakh lot.

• Check your contract notes after 1 April 2026

  STT on option sales should be 0.15% of premium and on futures sales 0.05%. Zerodha says it rounds STT to the nearest rupee, so a small gap from the paise figures here is expected.

• Ask a tax professional about how STT is treated in your return

  This page covers the rate and its cost only. It does not give tax advice.

STT hike questions traders search for

What is the STT hike effective date?+

1 April 2026. NSE's circular says the new rates apply to F&O transactions executed on or after that date. The Finance Act 2026 that made the change received assent on 30 March 2026.

Has STT on options increased?+

Yes. STT on the sale of an option went from 0.1% to 0.15% of the premium, and STT on an exercised option went from 0.125% to 0.15% of intrinsic value.

How much STT is charged on one Nifty futures lot now?+

0.05% of the sale value, paid once when you sell. On a lot worth ₹15 lakh that is ₹750, up from ₹300.

Does the STT hike apply to option buyers?+

Yes, on the exit. A buyer pays 0.15% of the premium when selling the option, or 0.15% of intrinsic value if it is exercised at expiry. Buying an option carries no STT.

Did STT on shares change in Budget 2026?+

No. Delivery stays at 0.1% on both sides and intraday at 0.025% on the sell side, as NSE's circular shows.

Sources

Every figure on this page comes from one of these. Each was checked on the date shown.

1. [1]The Finance Act, 2026 (No. 4 of 2026), Gazette of India Extraordinary, 30 Mar 2026, section 159 · checked 13 Oct 2026
2. [2]The Finance Bill, 2026 as introduced in Lok Sabha, clause 143 and notes on clauses · checked 13 Oct 2026
3. [3]Memorandum explaining the provisions in the Finance Bill 2026, Union Budget · checked 13 Oct 2026
4. [4]Budget 2026-2027 speech of the Finance Minister, 1 Feb 2026 · checked 13 Oct 2026
5. [5]NSE circular NSE/FATAX/73524, Changes in relation to rates of Securities Transaction Tax, 31 Mar 2026 · checked 13 Oct 2026
6. [6]NSE circular NSE/FATAX/63809, Changes in rates of STT, 9 Sep 2024 · checked 13 Oct 2026
7. [7]Memorandum explaining the Finance (No. 2) Bill 2019, Rationalisation of provisions relating to STT · checked 13 Oct 2026
8. [8]NSE circular NSE/FAOP/70616, Revision in Market Lot of Derivative Contracts on Indices, 3 Oct 2025 · checked 13 Oct 2026
9. [9]NSE exchange communication circulars archive (1 Nov 2025 to 13 Oct 2026) · checked 13 Oct 2026
10. [10]SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/132, Measures to strengthen equity index derivatives framework, 1 Oct 2024 (full text copy) · checked 13 Oct 2026
11. [11]Zerodha charges page · checked 13 Oct 2026
12. [12]Zerodha Support: How is the Securities Transaction Tax (STT) calculated? · checked 13 Oct 2026
13. [13]Zerodha Support: Are there any other charges if option positions get exercised? · checked 13 Oct 2026
14. [14]Zerodha Z-Connect: Clarification on additional brokerage on F&O trades, 27 Mar 2026 · checked 13 Oct 2026
15. [15]Angel One news: STT hike on F&O trade effective today April 1, 1 Apr 2026 · checked 13 Oct 2026