← GlossaryPolicy & Tax
Securities Transaction Tax (STT)
STT is levied on the value of transactions in listed shares, equity mutual funds and derivatives on Indian exchanges. It is collected automatically by the exchange through the broker, whether the trade makes money or not.
Why It Matters
For frequent traders, STT is a cost on every trade; for long-term investors, it barely registers.
In India
The 2026 Budget raised STT on futures from 0.02% to 0.05% and on options to 0.15%, making speculation more expensive.
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