How is the Securities Transaction Tax (STT) calculated?
Securities Transaction Tax (STT) is a direct tax charged on the purchase and sale of securities listed on the exchanges in India.
The STT charges for different types of trades are as follows:
|
Order Type |
Charge |
|
Intraday |
0.025% on the sell side. |
|
Delivery |
0.1% on both the buy and sell side. |
|
Options |
0.125% of the intrinsic value on options that are bought and exercised. |
|
0.0625% of the premium for options that are shorted. |
|
|
Futures |
0.0125% on the sell side. |
Since the STT is charged on both the buy and sell side for delivery trades, the average price is to be calculated. The formula to calculate the average price is:
Average price = (Buy Qty*Buy Price) + (Sell Qty*Sell Price) / (Buy Qty + Sell Qty)
Statutory and Exchange
- What is Account Maintenance Charge (AMC)?
- What are the various statutory charges associated with trading and investing?
- How is the Securities Transaction Tax (STT) calculated?
- What are the MCX transaction charges and why are they different across brokers?
- Will brokerage and taxes be considered when margins are blocked for trades in the commodity segment?
- How to pay the Account Maintenance Charge (AMC)
- Why is GST being levied on SEBI charges?
- What are clearing charges?
- Are there any other charges if option positions get exercised?
- What are call and trade charges?