STT

    Securities Transaction Tax

    Taxation

    A tax levied on every purchase and sale of securities (equity shares, derivatives, mutual funds) on recognized stock exchanges.

    Formula

    STT rates vary: 0.1% on delivery equity, 0.0125% on F&O

    Why it matters

    STT is deducted at source. It's in addition to capital gains tax but can't be claimed as expense.

    Indian example

    Related terms