STT on WebNotes

Equity delivery brokerage at Zerodha (zero fee)

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

Overview

Zerodha charges zero brokerage on equity delivery trades – orders placed under the CNC (Cash and Carry) product type on its Kite trading platform. This means the broker retains no brokerage fee from the client on the buy or sell leg of a delivery trade. The policy is unconditional: it applies to all listed equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with no minimum transaction value, no monthly trade-count threshold, and no account-tier qualification required.

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.

Tax treatment of listing-day gains

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

Listing-day gains are profits realised by investors who sell shares allotted in an initial public offering (IPO) on the very first day those shares are admitted to trading on a recognised stock exchange. The tax treatment of such gains is governed by Section 111A of the Income Tax Act 1961, which taxes short-term capital gains (STCG) on listed equity at a flat 20% (as revised by the Finance Act 2024), provided that Securities Transaction Tax (STT) has been paid on the sale.

Zerodha brokerage structure overview

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

Overview

Zerodha operates a flat-fee brokerage model that departed from the percentage-of-turnover convention dominant among Indian brokers when the firm launched in 2010. Under this model, the brokerage component of a trade’s cost is either zero (for equity delivery) or capped at a flat Rs 20 per executed order across all other segments. The total amount debited from a client’s account, however, is substantially larger because several statutory levies – securities transaction tax, exchange transaction charges, GST, stamp duty, and the SEBI turnover fee – are collected on top of brokerage and remitted to the relevant governmental or regulatory authorities.