Securities Transaction Tax (STT) is a tax on buying and selling stocks and other securities on Indian stock exchanges.\
STT charges by order type
| Order type | Charges |
|---|---|
| Equity intraday | 0.025% (₹25 per lakh) on the sell side |
| Equity delivery | 0.1% (₹100 per lakh) on both the buy and sell side |
| Options (exercised) | 0.125% of the intrinsic value on options that are bought and exercised |
| Options (shorted) | 0.1% of the premium for options that are shorted |
| Futures | 0.02% (₹20 per lakh) on the sell side |
Effective April 2025 , STT rates on futures and options will change:
- Futures: 0.05% on the sell side (up from 0.02%)
- Options premium: 0.15% for options that are shorted (up from 0.1%)
- Exercised options: 0.15% of the intrinsic value (up from 0.125%)
Rounding off STT
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
- Buy: 500 shares at ₹100 each.
- Sell: 500 shares at ₹105 each.
- Average price = [(500 × ₹100) + (500 × ₹105)] ÷ 1,000 = ₹102.50
- STT (on sell side) = 500 × ₹102.50 × 0.025% = ₹13 (₹12.81 rounded up)
Equity delivery
- Buy: 500 shares at ₹100 each.
- Sell: 500 shares at ₹105 each.
- STT on buy = 500 × ₹100 × 0.1% = ₹50
- STT on sell = 500 × ₹105 × 0.1% = ₹53 (₹52.50 rounded up)
Options
STT on the intrinsic value of an exercised option contract:
- 1 lot of CE = 50 units
- Strike price = ₹17,300
- Spot price = ₹17,350
- Intrinsic value for 1 lot = (₹17,350 − ₹17,300) × 50 units = ₹2,500
- STT on intrinsic value = 0.125% × ₹2,500 = ₹3 (₹3.125 rounded up)
STT on premium:
- 1 lot = 50 units
- Strike price = ₹17,300
- Premium received = ₹60 per lot
- Total premium received = ₹60 × 50 units = ₹3,000
- STT on premium = 0.1% × ₹3,000 = ₹3
Futures
- Sell: 1 lot of XYZ futures contracts.
- Price of 1 lot = ₹7,50,000
- STT (on sell side) = 0.02% × ₹7,50,000 = ₹150
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.