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Is securities transaction tax (STT) levied on exchange traded funds (ETFs)?

Securities Transaction Tax (STT) does not apply to GOLD ETFs, LIQUID and Gilt ETFs, and some international ETFs. However, STT is levied on other ETFs.

The STT on other ETFs is as follows:

  • 0.001% (₹1 per lakh) on the sell side for delivery and BTST trades.
  • 0.025% (₹25 per lakh) on the sell side for intraday trades.

You can download the STT Non-applicability report to learn the instruments on which STT is not applicable.

To learn more about ETFS, visit Varsity's personal finance module on Exchange-Traded Funds (ETF).

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