What is STT in Trading?

STT (Securities Transaction Tax) in India is a “direct tax” imposed on the purchase and sale of securities, such as:

• Stocks/ Equity shares
• Derivatives, and 
• Mutual fund units

STT was introduced in 2004, and its rate varies by transaction type. Generally, it is collected by the broker or exchange and paid to the government. 

Note: STT is separate from brokerage, exchange transaction charges, GST, and stamp duty. 

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