Securities Transaction Tax

STT Computation

The following procedure is adopted in respect of the calculation and collection of STT:

• Securities Transaction tax (STT) is applicable on transactions executed on exchange, as specified in circulars issued by Exchanges from time to time. 

• STT is applicable on all sell transactions for both futures and option contracts.

• For the purpose of STT, each futures trade is valued at the actual traded price and option trade is valued at premium. 

• In case of final exercise of an option contract, STT is levied on intrinsic value if the option contract is in-the- money on the day of expiry.

• STT at the rates as applicable to the delivery-based equity transaction shall also be applicable on the physically settled stock derivatives (both Futures and Options). The said STT will be payable by both the Purchaser (receiver) of the securities as well as by the Seller (giver) of the securities.

• STT payable by the clearing member is the sum total of STT payable by all trading members clearing under him. The trading member's liability is the aggregate STT liability of clients trading through him.

Information to members

A report is provided to the members at the end of each trading day. The report contains information on the total STT liability, trading member wise STT liability, client wise STT liability and also the detailed computations for determining the client wise STT liability.