How is the Securities Transaction Tax (STT) Calculated at Zerodha?
The Securities Transaction Tax (STT) is a tax charged on the purchase and sale of securities listed on the stock exchanges in India. If the decimal value of paise in the STT is equal to or more than 50, it will be rounded to the nearest rupee. If it is less than 50, it will be rounded down to the nearest rupee. For example, if the STT is ₹100.60, it will be rounded to ₹101, and if it is ₹100.40, it will be rounded to ₹100.
Here are the STT charges for different types of trades presented in a table:
| Order Type | Charge |
|---|---|
| Intraday | 0.025% on the sell side. |
| Delivery | 0.1% on both the buy and sell side. |
| Options | 0.125% of the intrinsic value on options that are bought and exercised. |
| 0.0625% of the premium for options that are shorted. | |
| Futures | 0.0125% on the sell side. |
For correct STT calculation in delivery trades, calculate the average price using the formula provided since STT is charged on both buy and sell transactions. Below is the formula provided:
Average price = [(Buy Qty*Buy Price) + (Sell Qty*Sell Price)] / (Buy Qty+Sell Qty)