STT hike on F&O (October 2024)

Mon, 18 May 2026 00:00:00 +0000

The STT hike on F&O that took effect on 1 October 2024 raised the Securities Transaction Tax on options selling from 0.0625 per cent of premium to 0.1 per cent and on futures selling from 0.0125 per cent of traded value to 0.02 per cent. The hike, announced by Finance Minister Nirmala Sitharaman in the Union Budget on 23 July 2024 and operationalised through a Central Board of Direct Taxes (CBDT) notification, raised the per-trade fixed-cost component of every F&O transaction by approximately 60 per cent for options and 60 per cent for futures. The change was the first STT rate hike on F&O since the introduction of options STT in 2008 and reversed the long-running trend of progressively lower transaction taxes on derivatives.

Union Budget 2024 on WebNotes

STT hike on F&O (October 2024)