What is Securities Transaction Tax (STT)?
The Securities Transaction Tax (STT) is levied on transactions (buy and sell) conducted through the stock exchanges.
- Taxable securities include equity, derivatives, equity-oriented mutual funds, unlisted shares sold under an offer for sale to the public included in an IPO (where such shares are subsequently listed on a stock exchange).
- STT charges are shown in the contract note of executed trades.
- STT is not applicable on commodity and currency trades.
- STT is not applicable on off-market transactions.
STT sometimes comes with decimal points. In such cases, STT will be rounded off. If the portion of paise in STT or value after the decimal point is equal to or more than 50, it will be rounded off to the nearest rupee, and if it is less than 50, it will be rounded down to the nearest rupee. For example, if the STT is ₹200.60, it will be rounded off to ₹201, and if the STT is ₹200.40, it will be rounded down to ₹200.To know more, refer SEBI's STT Rules
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