What are STT charges?

STT is a government tax on securities transactions, charged on both equity and derivative trades.

Written By Archit Sunat

Last updated 27 days ago

What is Securities Transaction Tax?

Securities Transaction Tax (STT) is a direct tax collected by the Indian government on every transaction that happens on a recognised stock exchange. It was introduced to bring transparency to share market transactions and is mandatory for all brokers to collect.

When is STT charged?

STT applies differently depending on the type of trade:

  • Equity delivery — Charged on both buy and sell sides at 0.1% of the transaction value.

  • Equity intraday — Charged only on the sell side at 0.025% of the transaction value.

  • Options — Charged on the sell side at 0.0625% of the premium value.

  • Futures — Charged on the sell side at 0.0125% of the transaction value.

Is STT set by Punch?

No. STT rates are determined entirely by the government and are the same regardless of which broker you use. Punch simply collects it on behalf of the government and passes it through. You can see the STT amount for each trade in your contract note and in the Charges section of the app.