Securities Transaction Tax on WebNotes

How to claim STT rebate or credit in India

Tue, 12 May 2026 00:00:00 +0000

Securities Transaction Tax (STT) is a transaction levy collected at source by stock exchanges on the purchase and sale of securities. Many traders search for an STT rebate or tax credit, recalling that such a rebate existed before 2009. This guide clarifies the current legal position, explains when STT is deductible as a business expense, and shows how to enter it correctly in ITR-3.

STT on equity-oriented mutual fund redemption

Tue, 12 May 2026 00:00:00 +0000

Securities transaction tax (STT) is a direct tax levied on the value of transactions in specified securities, including units of equity-oriented mutual funds. For mutual funds, STT applies on the redemption of equity-oriented fund units at the rate of 0.001 per cent of the redemption value. It was introduced by the Finance (No. 2) Act, 2004 and is administered under Chapter VII of that Act.

STT is a Central Government tax collected at the point of transaction by the AMC (acting as a responsible person), and is credited to the Consolidated Fund of India. It is separate from, and in addition to, capital gains tax on the same transaction.

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.