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.

To know more, refer SEBI's STT Rules

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