Explainer
The April 2026 STT hike on F&O, explained
From 1 April 2026, Securities Transaction Tax (STT) on futures rose from 0.02% to 0.05%, and on options from 0.10% to 0.15% of premium. For most F&O traders, STT is now by far the biggest cost per trade, much larger than brokerage.
Old vs new STT rates
| Segment | Charged on | Until 31 Mar 2026 | From 1 Apr 2026 |
|---|---|---|---|
| Futures | Sell-side contract value | 0.02% | 0.05% |
| Options (sold) | Sell-side premium | 0.10% | 0.15% |
| Options (exercised) | Intrinsic value | 0.125% | 0.15% |
| Equity delivery | Buy & sell value | 0.1% | 0.1% (unchanged) |
| Equity intraday | Sell-side value | 0.025% | 0.025% (unchanged) |
What it costs you: worked examples
One index futures trade
Sell 75 units at ₹24,600 (sell value ₹18.45 lakh):
- Old STT: 0.02% = ₹369
- New STT: 0.05% = ₹922.50
- Extra tax on one trade: ₹553.50
One options trade
Sell 75 units at a premium of ₹140 (sell premium ₹10,500):
- Old STT: 0.10% = ₹10.50
- New STT: 0.15% = ₹15.75
An active option seller over a year
Someone who sells ₹1 lakh of option premium every trading day pays an extra 0.05% = ₹50 a day. Over about 250 trading days that is roughly ₹12,500 more STT a year, before any brokerage.
Who is affected most?
- Futures traders: STT went up 2.5×, and futures contract values are large.
- High-frequency option traders and scalpers: small profits per trade now absorb more tax.
- Investors buying and holding shares: not affected; delivery STT is unchanged.
Does your broker matter?
No. STT is a government tax, so it is the same at every broker. What differs is brokerage, DP charges and AMC. Use the all-in cost calculator to see your full cost, STT included, at six brokers.
Source: Union Budget 2026–27; rates as published on brokers' official charges pages, checked on . This is an educational summary, not tax advice.