How is Securities Transaction Tax (STT) calculated on trades?
STT is a government tax applicable to equity and derivative transactions. The rates vary based on trade type:
- Equity intraday: 0.025% on the sell side.
- Equity delivery: 0.1% on both buy & sell
- Options: 0.125% of the intrinsic value on options that are bought and 0.1% of the premium for options that are shorted.
- Futures: 0.0125% on the sell-side for options and 0.01% on futures