Categories: Stocks

Securities Transaction Tax (STT)

STT or Securities Transaction Tax is a tax payable on sale or purchase transactions for securities listed on stock exchanges in India. Different STT rates are applicable for Equity (cash) and Futures & Options (F&O) transactions. STT is levied on trades on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and other recognized stock exchanges. STT rates are fixed by the central government and any change is communicated through the annual budget. A broker has to comply with the STT provisions while providing services to the investors. STT has to be deducted and deposited to the government by the broker. The STT charge is displayed on contract notes shared with investors for all the transactions. STT is levied on shares, bonds, debentures and other specified securities.
STT calculation:
Rate of STT (%) x share price (B/S) x No of shares (B/S)

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