STT on options and futures in India (2026)

From 1 April 2026, securities transaction tax (STT) on options is 0.15% of the premium, paid by the seller, and 0.15% of the intrinsic value when an option is exercised, paid by the buyer. STT on futures is 0.05% of the sell value. The same rates apply to index and stock options and futures. Before April 2026 the rates were 0.1%, 0.125% and 0.02%.

Checked 3 November 2026 · sources below

STT on Indian F&O

Words used on this page

• Premium - the price of the option, per unit.
• Exercised - the option is settled at expiry instead of being sold before.
• Intrinsic value - how much the option is in the money: for a call, the settlement price minus the strike, times the lot size.

Worked example: selling an option

You sell 1 lot of NIFTY options (65 units) at a premium of Rs 120. Sell value = 65 x 120 = Rs 7,800. STT = 0.15% x 7,800 = Rs 11.70. Buying the same option back later has no STT.

Worked example: sell before expiry or let it be exercised?

You hold 1 lot (65 units) of a NIFTY call that will settle Rs 40 in the money, so its premium near expiry is about Rs 40.

• Sell before expiry: sell value 65 x 40 = Rs 2,600; STT 0.15% = Rs 3.90, plus brokerage for the sell order.
• Let it be exercised: intrinsic value 65 x 40 = Rs 2,600; STT 0.15% = Rs 3.90; your broker may charge its own exercise fee.

With both rates now 0.15%, the STT is about the same either way; selling can cost slightly more if the premium is above the intrinsic value. Before April 2026 the exercise rate (0.125%) was higher than the selling rate (0.1%). Check your broker's exercise charges, and note that stock options and futures are settled by delivery of shares, which needs money or shares in your account.

Worked example: futures

You sell 1 lot of NIFTY futures (65 units) at 25,000. Sell value = 65 x 25,000 = Rs 16,25,000. STT = 0.05% x 16,25,000 = Rs 812.50. Buying futures has no STT.

Other charges on the same trade

STT is one of several charges: exchange fees, SEBI fees, stamp duty on the buy side, GST on brokerage and fees, and brokerage itself. Contract notes may round the figures, so small differences from these examples are normal. See every charge with rates on our F&O charges guide, or work out a full trade in the Trade Planner.

Questions

Is STT charged on buying options?

Not on buying the premium. The buyer pays STT only if the option is exercised.

Can I claim STT as an expense?

For F&O traded as a business, STT is usually allowed as a business expense under the Income Tax Act. Confirm with your chartered accountant.

Why do broker websites show different STT rates?

Some pages were not updated after the October 2024 and April 2026 changes. Use the rate for your trade date and check your contract note.

Sources

• Union Budget 2026-27 (Finance Bill, STT changes from 1 April 2026)
• NSE: Securities Transaction Tax
• Income Tax Department