Frequently Asked Question
Securities Transaction Tax (STT) is a tax imposed on the purchase and sale of stocks and other securities on Indian stock exchanges. According to the NSE circular (PDF), the STT rates will be revised effective from October 1, 2024
Securities Transaction Tax (STT) for Different Order Types:
Order Type | New Charges | Old Charges |
Equity Intraday | 0.025% (₹25 per lakh) on the sell side. | 0.025% (₹25 per lakh) on the sell side. |
Equity Delivery | 0.1% (₹100 per lakh) on both buy and sell sides. | 0.1% (₹100 per lakh) on both buy and sell sides. |
Options | 0.125% of the intrinsic value for exercised buy options. | 0.125% of the intrinsic value for exercised buy options. |
Futures | 0.02% (₹20 per lakh) on the sell side. | 0.0125% (₹12.5 per lakh) on the sell side. |
Since STT on equity delivery trades is applied to both buying and selling, calculating the average price is important. The formula is as follows:
Average Price Formula:
Average Price= (Buy quantity × Buy price) + (Sell Quantity × Sell Price)
Buy Quantity + Sell Quantity
Or in simple terms:
Average Price = (Total cost of buying shares + Total proceeds from selling shares) / Total number of shares traded