Securities Transaction Tax (STT) in India: Current Rates and Worked Examples

What Securities Transaction Tax actually is

Securities Transaction Tax (STT) applies to specified securities transactions rather than trading profit. Its rate and payer depend on the transaction. For futures, notional value means the full traded contract value, rather than the margin deposit. For options, intrinsic value is the in-the-money amount at exercise.

For exchange trades covered here, the broker collects STT through the exchange process and shows it on the contract note. It can apply even when the trade loses money. The transaction type determines its rate, payer and tax base, meaning the amount the rate is applied to.

STT and income tax are separate. Paying STT does not, by itself, establish eligibility for a particular capital-gains rate; other legal conditions can apply.

Current STT rates from April 2026

NSE/FATAX/73524, dated 31 March 2026, sets out the F&O changes effective 1 April 2026. The table reflects those rates, checked 16 October 2026. Use the rate applicable on the actual transaction date.

• Options sold: apply STT to premium value.
• Futures sold: apply STT to the full notional sell value, not the profit or margin.
• The sell side can be an opening short sale as well as an exit from a long position.
• Exercise STT is a separate buyer-side exception for options.
• Equity delivery STT applies on both purchase and sale.

How STT rates on F&O have changed since 2024

STT on futures and options has risen twice in two years. Each step came through a Finance Act and was circulated by NSE. Knowing the dates matters because a cost estimate that uses a rate from the wrong period will not match your contract note.

For the full dated list of changes, including exchange fees, see the charges changelog. For what the 2026 increase means for different styles of trader, read the STT hike 2026 impact page.

Worked example 1: selling a Nifty option

Illustrative option sale: assume premium ₹120 and total quantity 65 units, without claiming a live Nifty lot size. Sale premium value is 120 × 65 = ₹7,800.

At 0.15%, STT on that example sale is 7,800 × 0.15 / 100 = ₹11.70 before any broker statement rounding. The tax is based on sale premium even if the overall trade loses money.

What the rate rise does to a round number of rupees

A rate looks small until you apply it to turnover. This table uses a made-up ₹10 lakh of option premium sold and ₹3 crore of futures sold, so you can see what each period’s rate would charge on the same base. The amounts are STT only.

On the options side, the bill from April 2026 is 1.5 times the earlier ₹1,000 and 2.4 times the original ₹625. On the futures side, the same ₹3 crore of sales costs ₹15,000 instead of ₹6,000, which is 2.5 times as much. Futures traders therefore saw the larger proportional rise, because the base is the whole contract value rather than a premium.

Worked example 2: a Bank Nifty futures round trip

Illustrative futures trade: assume entry 51,000, exit 51,300 and total quantity 30 units. This is an assumed quantity, not a live lot-size quotation. Gross profit is (51,300 − 51,000) × 30 = ₹9,000.

Sell notional is 51,300 × 30 = ₹15,39,000. At 0.05%, example STT is ₹769.50 before statement rounding. Other charges still need to be deducted.

The last row is not net trading profit: brokerage, exchange fees, stamp duty and applicable GST remain. A generic “typical costs” allowance cannot establish the full bill.

Worked example 3: equity delivery

In this share-delivery example, STT applies on both purchase and sale. Suppose you buy 50 shares of Reliance Industries at Rs 1,400 and sell them months later at Rs 1,600. These prices are illustrative. Your buy value is Rs 70,000 and your sell value is Rs 80,000, for a gross profit of Rs 10,000.

• STT on illustrative purchase: 0.1% × ₹70,000 = ₹70.
• STT on illustrative sale: 0.1% × ₹80,000 = ₹80.
• Total example STT: ₹150, separate from income tax.

This example shows transaction tax only. The holding period, classification of the investment and other conditions affect income tax; ask a qualified tax adviser rather than inferring it from the STT bill.

Worked example 4: an intraday share trade

In an intraday share trade, STT is charged on the sell value only. Suppose, in a made-up trade, you buy 100 shares at ₹500 and sell them at ₹506 the same day. Sell value is ₹50,600. At 0.025%, STT is ₹50,600 × 0.025 ÷ 100 = ₹12.65. There is no STT on the buy side. Gross profit is (₹506 - ₹500) × 100 = ₹600, so STT alone takes about 2% of the gross gain. Brokerage and other charges come on top.

Worked example 5: a losing option trade still pays STT

STT does not depend on profit. Suppose you sell an option at ₹80 with 65 units and later buy it back at ₹110, a loss. The sale premium is ₹80 × 65 = ₹5,200, so STT at 0.15% is ₹7.80, charged even though the trade lost ₹30 per unit, or ₹1,950 in total. Check that your journal records the STT line separately, as it will show up in your net result even on losing trades.

How STT interacts with capital gains and business income

Do not deduct STT from turnover to determine taxable profit. The deductibility question depends on the applicable law and how the transactions are reported. Keep the expense records for a qualified tax adviser to assess.

Capital-gains treatment has its own conditions. An STT charge alone is not proof of a particular rate or exemption, and the tax treatment should be checked for the relevant period.

STT versus the other charges on your contract note

STT is only one line on your contract note, and traders often confuse it with the other statutory and broker charges. Knowing the difference helps you read your own costs accurately and spot when a calculator is using stale numbers.

• STT: transaction tax, with the bases above.
• Exchange transaction charges: separate exchange fees.
• SEBI turnover fee: a separate regulatory charge.
• Stamp duty: buy-side charge whose rate depends on the segment.
• GST: charged on taxable service fees, not on STT itself.
• Brokerage: the broker tariff, which must be checked separately.

Zerodha lists GST on brokerage, exchange transaction charges and the SEBI fee. Its stated GST base excludes STT. Check those cost lines separately when reconciling a contract note.

How to reconcile STT with your contract note

Your broker’s contract note lists STT as a single line for each segment and day. To check it, follow these steps and note any gap in the journal.

1. Find the sell value or premium value for the segment on the contract note.
2. Apply the rate for the trade date to the right base: sell notional for futures, premium for options sold, intrinsic value for exercised options, trade value for delivery.
3. Compare the result with the STT line. Small differences usually come from rounding.
4. If the gap is large, check whether you have the right date, side and segment.
5. Keep the contract note with your records for your tax adviser.

Our guides on brokerage and charges and how to calculate brokerage go through the other lines.

Why turnover changes the STT bill

Frequent option sales accumulate premium-based STT. An option writer pays it on the opening sale; an option buyer who later sells pays it on that exit. The tax is not limited to profitable trades or to option writers.

For the same tax base, a higher rate increases the bill. The relative effect on a strategy depends on gross profits, losses, turnover and other charges; it cannot be ranked by option moneyness alone.

Checking Your STT Bill

Turnover affects cumulative STT. Assess after-cost results rather than choosing transactions solely to reduce tax. Income classification must follow the facts and law, not a desired deduction.

• Check sale-premium STT and exercise STT separately.
• Use the correct transaction-date rates in cost estimates.
• Retain contract notes and broker statements.
• Avoid counting an already charged transaction tax again as a new payment.

Compliance, records and who collects STT

The broker reports STT on the contract note and handles collection through the exchange process. Keep the transaction records for reconciliation and income-tax review.

Compare the rate, side and base on each relevant record. If figures differ from an estimate, check statement rounding and whether the transaction was a sale or exercise.

Income tax, STT and the trader’s records

STT is paid when you trade. Income tax is paid on your net income when you file your return. How the two interact depends on how your income is classified, for example as business income or capital gains, and that is a matter for a chartered accountant. Our entries on intraday trading taxation and tax audit for traders introduce the questions to ask.

In OneTradeJournal you enter trades by hand and the app estimates charges per trade, so you can see an estimated STT line next to each result. The estimate is not a contract note, so replace it with the actual figure when you reconcile.

Related Reading

For related examples, see the STT calculator, option premium guide and options assignment.

Sources

• NSE: STT rates effective April 2026 (checked 16 Oct 2026)
• Zerodha: STT bases and service charges (checked 16 Oct 2026)