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What is Securities Transaction Tax (STT) and how is it calculated?

Securities Transaction Tax (STT) is a tax on buying and selling stocks and other securities on Indian stock exchanges. STT rates on futures and options (F&O) changed on 1 April 2026. Equity delivery and intraday rates remain unchanged.

STT charges by order type

Order type Rate Applicable side
Equity intraday 0.025% (₹25 per lakh) Sell side only
Equity delivery 0.1% (₹100 per lakh) Both buy and sell sides
Options (exercised) 0.15% of intrinsic value Options bought and exercised
Options (shorted) 0.15% of the premium Options that are shorted
Futures 0.05% (₹50 per lakh) Sell side only

The F&O rate changes took effect from 1 April 2026 as per Budget 2026–27. The previous rates were 0.02% for futures, 0.1% for options shorted, and 0.125% for exercised options.

How STT is rounded off

STT is rounded to the nearest rupee based on the paise portion:

  • If the paise portion is 50 or more, STT rounds up (e.g., ₹100.60 becomes ₹101).
  • If the paise portion is less than 50, STT rounds down (e.g., ₹100.40 becomes ₹100).

How to calculate average price for delivery trades

Since STT applies to both the buy and sell side for delivery trades, you need to calculate the average price first:

  • Average price = (Total cost to buy shares + Total revenue from selling shares) ÷ Total number of shares bought and sold
  • Average price = [(Buy Qty × Buy Price) + (Sell Qty × Sell Price)] ÷ (Buy Qty + Sell Qty)

Example calculations

Equity intraday

  1. Buy: 500 shares at ₹100 each.
  2. Sell: 500 shares at ₹105 each.
  3. Average price = [(500 × ₹100) + (500 × ₹105)] ÷ 1,000 = ₹102.50.
  4. STT (on sell side) = 500 × ₹102.50 × 0.025% = ₹13 (₹12.81 rounded up).

Equity delivery

  1. Buy: 500 shares at ₹100 each.
  2. Sell: 500 shares at ₹105 each.
  3. STT on buy = 500 × ₹100 × 0.1% = ₹50.
  4. STT on sell = 500 × ₹105 × 0.1% = ₹53 (₹52.50 rounded up).

Options (exercised)

STT on the intrinsic value of an exercised option contract:

  1. 1 lot of CE = 50 units.
  2. Strike price = ₹17,300.
  3. Spot price = ₹17,350.
  4. Intrinsic value for 1 lot = (₹17,350 − ₹17,300) × 50 units = ₹2,500.
  5. STT on intrinsic value = 0.15% × ₹2,500 = ₹4 (₹3.75 rounded up).

Options (shorted)

STT on the premium for shorted options:

  1. 1 lot = 50 units.
  2. Strike price = ₹17,300.
  3. Premium received = ₹60 per lot.
  4. Total premium received = ₹60 × 50 units = ₹3,000.
  5. STT on premium = 0.15% × ₹3,000 = ₹5 (₹4.50 rounded up).

Futures

  1. Sell: 1 lot of XYZ futures contracts.
  2. Price of 1 lot = ₹7,50,000.
  3. STT (on sell side) = 0.05% × ₹7,50,000 = ₹375.

You can find all charges involved in trading and investing on the Zerodha charges page. Use the brokerage calculator to calculate charges for any specific trade.

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