STT, GST and stamp duty on trades
Part of Tax on investments. 6 min read. Free lesson with a short video, quiz and practice.
Besides income tax on your gains, every trade carries small transaction taxes and charges. They are paid whether you make a profit or a loss, so frequent trading makes them add up.
Securities transaction tax (STT)
| Trade | STT |
|---|---|
| Equity delivery | 0.1% on both buy and sell |
| Equity intraday | 0.025% on sell |
| Futures | 0.05% on sell (0.02% before 1 April 2026) |
| Options sold | 0.15% of premium (0.1% before 1 April 2026) |
| Options exercised | 0.15% of intrinsic value (0.125% before) |
| Equity mutual fund redemption | 0.001% |
Stamp duty
Charged only on the buy side, at one national rate: 0.015% for delivery, 0.003% for intraday, 0.002% for futures and 0.003% of the premium for options. Mutual fund purchases have stamp duty of 0.005%.
GST and other fees
- GST at 18% on brokerage, exchange transaction charges and SEBI fees. GST does not apply to STT or stamp duty.
- SEBI turnover fee: ₹10 per crore of trade value.
- Exchange charges: a small percentage that differs by exchange and segment.
- DP charge: a flat fee per company when shares leave your demat account on a sale.
Worked examples
Futures: selling one lot of a futures contract worth ₹15,00,000 costs STT of 0.05% = ₹750. Before April 2026 it was ₹300.
Delivery: buying shares for ₹1,00,000 and later selling them for ₹1,10,000 costs STT of ₹100 + ₹110 = ₹210, and stamp duty of ₹15. With other charges, roughly ₹250 in total, even with zero brokerage.
How they affect income tax
- For capital gains (delivery, mutual funds), brokerage and similar costs can be deducted from the gain, but STT cannot.
- For business income (F&O, intraday), STT and all trading charges are deductible expenses.
Where to see them
After each trading day, your broker sends a contract note listing every trade and every charge. Check it, and compare brokers on total cost, not just brokerage.
Key takeaways
- STT, stamp duty, GST, exchange and SEBI fees are paid on every trade, profit or loss.
- From 1 April 2026, STT is 0.05% on futures sales and 0.15% on options premium.
- Stamp duty applies only on purchases; GST is 18% on brokerage and fees.
- STT can't be deducted from capital gains but is an expense for F&O and intraday income.
- Your contract note lists every charge for each trading day.
Quick quiz
What is STT on selling futures from 1 April 2026?
Answer: 0.05%. It rose from 0.02% to 0.05% of the sale value.
Stamp duty is charged on…
Answer: Buy side only. Stamp duty applies only to purchases.
Which charge does GST apply to?
Answer: Brokerage. GST at 18% applies to brokerage, exchange charges and SEBI fees.
For F&O business income, is STT deductible?
Answer: Yes, as a trading expense. For business income, STT is a deductible expense.