Securities Transaction Tax

STT is charged on turnover rather than on profit, so it is payable whether the trade made money or lost it, and it applies at different rates across delivery, intraday, futures and options segments — with options charged on the premium rather than on the notional value. Rates are revised in budgets and have been raised for derivatives, so the current schedule should always be checked rather than assumed. Paying STT is what qualifies listed equity for the concessional capital gains treatment, which is why off-market transfers are treated differently. STT is not deductible against capital gains, unlike brokerage.