Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Securities Transaction Tax is a direct tax levied on purchase and sale of securities on recognised stock exchanges in India.
STT is a small tax on every stock or equity fund trade you make — deducted automatically when you buy or sell.
Rates differ by instrument: delivery equity, intraday, futures, options, and mutual fund redemptions each have specified STT rates. STT paid may affect capital gains computation eligibility in certain cases per IT Act provisions.
Selling equity shares worth ₹2 lakh may incur STT of roughly ₹200 at applicable delivery rate — deducted before proceeds credit to your account.
Generally not deductible against salary. Capital gains tax treatment interacts with STT payment per specific asset and period rules.
STT applies on redemption of equity-oriented mutual fund units, not on each SIP purchase instalment.
Yes. ETF buy/sell on exchange attracts STT similar to equity delivery transactions per notified rates.