Securities transaction tax
Also called: STT
A tax charged on the value of buying and selling shares and other securities on a stock exchange in India, collected through your broker.
STT is charged on each trade at rates that depend on the type of transaction, for example on both the purchase and sale of shares settled by delivery, and on the sale side only for intraday trades and derivatives. The rates are set by the government and change from time to time.
STT is charged whether the trade makes money or not, and it is separate from any tax on the gain itself.
Example
If the rate were 0.1%, buying ₹50,000 of shares for delivery would carry ₹50 of STT. The current rates are on the exchanges' websites and your contract note.
Learn more in these lessons
- Trading costs and taxes on sharesWhat charges and taxes do you pay when you buy and sell shares?
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