Glossary term
STT
A small tax automatically charged on every buy and sell of listed equity, equity mutual funds, and F&O contracts.
Securities Transaction Tax (STT) is a small tax — currently 0.1% on equity delivery, lower on intraday and F&O — automatically deducted on every transaction in listed Indian securities. You don't pay it separately; it's baked into the price your broker shows.
Paying STT is what qualifies equity gains for the 12.5% LTCG rate; off-market transfers without STT don't get the concessional rate. STT was raised on F&O in October 2024 to discourage retail derivatives trading.