India · Reviewed 2026-08-20
Securities Transaction Tax (STT) in India
STT is levied on many exchange-traded equity transactions in India. It is a transaction tax distinct from capital gains, though the two systems historically interacted.
What STT is
STT is collected on specified securities transactions (equity delivery, intraday, derivatives - each with its own schedule). You see it on contract notes as part of trade charges.
Why investors care
STT raises round-trip costs and appears in profit calculations even before capital-gains tax. Delivery vs intraday STT rates differ - strategy choice changes the tax friction.
Common mistakes
- Comparing Indian day-trading P&L to U.S. paper gains without STT.
Sources & further reading
Transaction taxes FAQ
Short answers for discovery.
What is securities transaction tax (stt) in india?
STT is levied on many exchange-traded equity transactions in India. It is a transaction tax distinct from capital gains, though the two systems historically interacted.
What is a common mistake on India securities transaction tax (stt) in india?
Comparing Indian day-trading P&L to U.S. paper gains without STT.
Investor tax guides
Featured explainers that pair with the India desk and this topic - then open All guides for the full library.
- Tax Loss Harvesting Explained for Stock InvestorsTax loss harvesting means selling investments at a loss in a taxable account to offset capital gains (and sometimes a slice of ordinary income), then staying invested without triggering wash-sale or anti-avoidance rules. It helps most when you already have gains to offset - not as a reason to wreck a long-term plan.
- Capital Gains Tax on Stocks: Investor OverviewCapital gains tax (CGT) generally applies when you sell shares or ETFs for more than your cost basis. Rates, allowances, and holding-period rules vary by country - start here for the shared math, then open a StockWatch country CGT desk or country guide before you file.
- Crypto Tax Basics for InvestorsMost tax systems treat crypto like property for investors: selling, swapping, or spending can realize a gain or loss, and staking or airdrop rewards may look like income. Rules differ sharply by country - use this guide to frame the events, then open a capital-gains desk for your residency.
- Tax-Advantaged Accounts for Investors (IRA, 401k, ISA & More)Tax-advantaged accounts change when and how investment income is taxed: deferral inside pensions, tax-free growth in some wrappers, or employer plans with contribution limits. Names differ (401(k), IRA, ISA, TFSA, SIPP) - the design pattern is similar, and taxable brokerages still matter for overflow capital.
- Tax Loss Harvesting in India (Equity & Mutual Funds)In India, investors often book losses on shares or equity funds to offset capital gains under Income Tax rules that distinguish short-term and long-term treatment. Broker statements, grandfathers, and the latest Finance Act language matter more than U.S. wash-sale folklore. Educational only - confirm with a CA for your return.
- Capital Gains Tax on Equity in IndiaIndia’s equity CGT conversation centres on holding-period classification, rates for listed shares and equity-oriented funds, and set-off of losses. Budget language changes - treat this as a research map and confirm with a CA for the financial year you file.
- ETF vs Stock Tax Basics for InvestorsBuying an ETF vs a single stock can change what you report each year: funds may distribute dividends or capital-gain distributions, while stocks mainly create dividend and sale events. Wrappers can shelter both. Use this guide to compare structures, then open CGT and dividend guides for detail.