STT on options exercise

Sun, 21 Jun 2026 00:00:00 +0000

Overview

Securities transaction tax on options exercise is the central-government levy charged when an in-the-money option is settled at expiry rather than sold in the market, computed at 0.15 per cent of the intrinsic, or settlement, value of the exercised quantity (Finance Act 2026, effective 1 April 2026; previously 0.125 per cent). It is collected at source by the exchange under the Finance (No. 2) Act 2004 and passed through on the contract note. The defining feature is the base: an exercised option is taxed on intrinsic value, while an option sold to close is taxed at 0.15 per cent of premium on the sell side. Those two bases can differ by an order of magnitude.

Options exercise charges at Zerodha

Fri, 19 Jun 2026 00:00:00 +0000

Overview

Options exercise charges are the statutory levies and broker costs that apply when an in-the-money option position is settled at expiry on Zerodha rather than squared off in the market beforehand. The defining cost is securities transaction tax (STT) at 0.15 per cent of the intrinsic, or settlement, value of the exercised quantity, charged on the exercised contracts as recorded on the contract note (Zerodha charges page, as of 19 June 2026). This is a different and usually larger bill than the 0.15 per cent STT on premium that a trader pays when selling the same option to close.

Options Exercise on WebNotes

STT on options exercise

Overview

Options exercise charges at Zerodha

Overview