CTT on WebNotes

Securities Transaction Tax (STT)

Mon, 11 May 2026 00:00:00 +0000

Securities Transaction Tax (STT) is a tax levied in India on the purchase or sale of securities listed on a recognised stock exchange. It was introduced by Chapter VII of the Finance Act 2004 and came into force on 1 October 2004. STT is collected at source by the stock exchange or recognised intermediary and remitted to the central government on behalf of the transacting party. It is distinct from income tax and is payable irrespective of whether the transaction results in a profit or loss.

STT and CTT on Zerodha trades

Mon, 11 May 2026 00:00:00 +0000

Overview

Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT) are transaction-based taxes levied by the central government of India on trades executed on recognised stock and commodity exchanges. They are collected at the source by the exchange, which deducts them from the proceeds of each trade and remits them to the government. Brokers such as Zerodha pass these amounts through to clients as mandatory deductions on the contract note; they are not charges that Zerodha sets or retains.