View all categories

How is the Securities Transaction Tax (STT) calculated?

If the portion of paise in STT is equal to or more than 50, it will be rounded off to the nearest rupee, and if it is less than 50, it will be rounded down to the nearest rupee. For instance, if the STT is ₹100.60 it will be rounded off to ₹101, and if the STT is ₹100.40 it will be rounded down to ₹100.

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:

Order Type Charge
Intraday 0.025% on the sell side.
Delivery 0.1% on both the buy and sell side.
Options 0.125% of the intrinsic value on options that are bought and exercised.

0.0625% of the premium for options that are shorted.
Futures 0.0125% on the sell side.

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.