Taxes & charges

What is STT (Securities transaction tax)?

Also called: Securities transaction tax

Hinglish mein padhein: STT kya hota hai?

STT is a tax charged by the government on every purchase or sale of shares and derivatives on Indian exchanges.

For equity delivery trades, STT is 0.1% on both the buy and the sell. Intraday and F&O trades attract STT at different rates, which the Union Budget revises from time to time.

STT is deducted automatically by your broker and shown in the contract note.

Related terms

Brokerage and trading chargesEvery trade carries brokerage plus statutory charges: STT, exchange transaction charges, SEBI fees, stamp duty and GST.
Capital gains tax (STCG and LTCG)Profit on listed shares held up to 12 months is short-term capital gain (STCG); held longer, it is long-term (LTCG). They are taxed at different rates.
Intraday tradingIntraday trading means buying and selling the same stock within one trading day, so no shares are delivered to your demat account.