Budget 2026 Update: Securities Transaction Tax (STT) Changes
The Union Budget 2026–27 has proposed revisions in STT (Securities Transaction Tax) to rationalize the tax structure on derivatives:
Key Changes:
• STT on Futures: Increased from 0.02% → 0.05%
• STT on Options Premium: Increased from 0.10% → 0.15%
• STT on Exercise of Options: Increased from 0.125% → 0.15%
These changes are aimed at aligning taxation across equity derivatives, impacting traders and investors in the stock market.
What it means: Higher STT could slightly increase transaction costs for frequent traders but is expected to simplify tax compliance and uniformity in the derivatives segment.
Stay informed and plan your trading strategies accordingly!