--- title: "Securities Transaction Tax (STT): Rates and how to calculate it" description: "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…" category: account-opening subcategory: resident-individual slug: securities-transaction-tax-stt-rates-and-how-to-calculate-it canonical: https://support.arrow.trade/account-opening/resident-individual/securities-transaction-tax-stt-rates-and-how-to-calculate-it/ --- # Securities Transaction Tax (STT): Rates and how to calculate it > 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… ## 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. ## Related - Browse more in [resident individual](/account-opening/resident-individual/) - Open account: [kyc.arrow.trade](https://kyc.arrow.trade) - Trade on Arrow: [app.arrow.trade](https://app.arrow.trade) - Support: [support@arrow.trade](mailto:support@arrow.trade) --- Source: https://support.arrow.trade/account-opening/resident-individual/securities-transaction-tax-stt-rates-and-how-to-calculate-it/ Publisher: Arrow / iRage Broking Services LLP