Short answer
Securities Transaction Tax (STT) is a tax on buying and selling stocks and other securities on Indian stock exchanges. STT rates on futures and options (F&O) changed on 1 April 2026. Equity delivery and intraday rates remain unchanged.
STT charges by order type
The F&O rate changes took effect from 1 April 2026 as per Budget 2026–27. The previous rates were 0.02% for futures, 0.1% for options shorted, and 0.125% for exercised options.
How STT is rounded off
STT is rounded to the nearest rupee based on the paise portion:
If the paise portion is 50 or more, STT rounds up (e.g., ₹100.60 becomes ₹101).
If the paise portion is less than 50, STT rounds down (e.g., ₹100.40 becomes ₹100).
How to calculate average price for delivery trades
Since STT applies to both the buy and sell side for delivery trades, you need to calculate the average price first:
Average price = (Total cost to buy shares + Total revenue from selling shares) ÷ Total number of shares bought and sold
Average price = [(Buy Qty × Buy Price) + (Sell Qty × Sell Price)] ÷ (Buy Qty + Sell Qty)
Example calculations
Equity intraday
Buy: 500 shares at ₹100 each.
Sell: 500 shares at ₹105 each.
Average price = [(500 × ₹100) + (500 × ₹105)] ÷ 1,000 = ₹102.50.
STT (on sell side) = 500 × ₹102.50 × 0.025% = ₹13 (₹12.81 rounded up).
Equity delivery
Buy: 500 shares at ₹100 each.
Sell: 500 shares at ₹105 each.
STT on buy = 500 × ₹100 × 0.1% = ₹50.
STT on sell = 500 × ₹105 × 0.1% = ₹53 (₹52.50 rounded up).
Options (exercised)
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 for 1 lot = (₹17,350 − ₹17,300) × 50 units = ₹2,500.
STT on intrinsic value = 0.15% × ₹2,500 = ₹4 (₹3.75 rounded up).
Options (shorted)
STT on the premium for shorted options:
1 lot = 50 units.
Strike price = ₹17,300.
Premium received = ₹60 per lot.
Total premium received = ₹60 × 50 units = ₹3,000.
STT on premium = 0.15% × ₹3,000 = ₹5 (₹4.50 rounded up).
Futures
Sell: 1 lot of XYZ futures contracts.
Price of 1 lot = ₹7,50,000.
STT (on sell side) = 0.05% × ₹7,50,000 = ₹375.
You can find all charges involved in trading and investing on the Arrow pricing page. Use the brokerage calculator to calculate charges for any specific trade.
Broker details
iRage Broking Services LLP (SEBI registration INZ000011262), product name Arrow. Registered office: Gift City, Gandhinagar.
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