What are STT costs?

The STT is a regulatory measure designed to curb speculative trading and promote stability in the stock market. By imposing a tax on transactions, it encourages investors to think more carefully before entering into a trade.

STT, or Securities Transaction Tax, is a fee levied on equity transactions. For the purpose of equity shares, the tax is imposed at a rate of 0.1% of the transaction value.

This tax applies to both the buyer and seller of the equity shares, ensuring that both parties contribute equally to the overall tax burden.

In the case of delivery-based transactions, the STT is assessed on both the buying and selling sides. This means that for most equity transactions, investors must pay a total of 0.2% of the transaction value in STT.

The 0.1% rate for STT is relatively low, making it manageable for investors. However, it is important to note that the STT is just one of many costs associated with equity transactions, including brokerage fees, stamp duty, and other charges.