Securities Transaction Tax (STT)

Securities Transaction Tax (STT) is applicable on the value of the security traded on a recognized stock exchange in India. The current STT differs based on the nature of security, whether equity ( sale and purchase), future or an option. 

The current STT differs based on the nature of security, whether equity (0.1% on sale and purchase), future (0.02%) or an option(0.1%). It was proposed to increase the STT on futures and options in Budget 2026. The STT on futures is proposed to be increased from 0.02% to 0.05% of the traded price.