Securities Transaction Tax (STT) is a direct tax charged on the purchase and sale of securities listed on the exchanges in India.

The STT charges for different types of trades are as follows:

Since the STT is charged on both the buy and sell side for delivery trades, the average price is to be calculated. The formula to calculate the average price is:

Average price = (Buy Qty*Buy Price) + (Sell Qty*Sell Price) / (Buy Qty+Sell Qty)

Example scenarios

• Intraday and delivery

500 shares were bought at ₹100 and then sold at ₹105. 200 shares were again bought at ₹110.
Average Price = [First Buy (500*100) + Second Buy (200*110) + Sell (500*105)] / [First Buy (500) + Second Buy (200) + Sell (500)]
Average Price = (50000 + 22000 + 52500)/1200
Average Price = ₹103.75
STT for intraday trades = 500 (intraday sell qty) * 103.75 (average price) * 0.025% (STT charge) = ₹13 (₹12.969 rounded off to the nearest rupee)
STT for delivery transaction = 200 (buy qty) * 103.75 (average price) * 0.1% (STT charge) = ₹21 (₹20.75 rounded off to the nearest rupee)

• Futures
  

1 lot of Nifty futures contracts = 50 units
The price of 1 unit is = ₹15,000
The price of 1 lot of Nifty futures contracts = ₹7,50,000
STT = 0.0125% * ₹7,50,000 = ₹94 (₹93.75 rounded off to the nearest rupee)

• Options
  • The strike price of the Nifty call option = ₹17,000
    Premium at which the options were sold = ₹60
    The total premium received = ₹3,000 (50 * ₹60)
    STT on the premium for options that are shorted = 0.0625% * ₹3,000 = ₹2 (₹1.875 rounded off to the nearest rupee)
    
  • 1 lot of Nifty options contracts = 50 units
    The strike price of the Nifty call option = ₹17,300
    The spot price of the Nifty call option = ₹17,350
    STT on the intrinsic value of options that are bought and exercised = 0.125% * 50 (₹17,350 - ₹17,300) * 50 (1 Lot) = ₹3 (₹3.125 rounded down to the nearest rupee)

To learn all the charges involved while trading and investing, visit zerodha.com/charges#tab-equities. To calculate the charges for a particular trade, visit zerodha.com/brokerage-calculator#tab-equities.