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

STT Rates

Calculation Rules

• If the portion of  paise in STT is 50 or more, it is rounded off to the nearest rupee.
• If the paise is less than 50, it is rounded down to the nearest rupee.
• For instance, an STT of ₹100.60 is rounded off to ₹101, while ₹100.40 is rounded down to ₹100.

Example Scenarios

Equity Intraday

Equity Delivery

• Buy: 500 shares at ₹100 each (on 1st October 2024).
• Sell: 500 shares at ₹105 each (on 3rd October 2024).
• STT (Buy) = 500 (Shares bought) × 100 × 0.1% = ₹50.
• STT (Sell) = 500 (Shares Sold) × 105 × 0.1%  = ₹53 (52.50 rounded off to the nearest rupee)

Options

1. 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: (₹17,350 − ₹17,300) × 50 units = ₹2,500
   • STT on intrinsic value: 0.125% × ₹2,500 = ₹3 ( ₹ 3.125 rounded off to the nearest rupee)

1. STT on Premium

• Lot Size: 50 units.
• Strike Price: ₹17,300.
• Premium: ₹60 per lot.
• Total Premium: ₹60 × 50 units = ₹3,000
• STT on premium: 0.1%×₹3,000 = ₹3.

Futures

• Sell: 1 lot of XYZ futures contracts at ₹7, 50,000.
• STT (on sell side) = 0.02% × ₹7, 50,000 = ₹150.