Securities Transaction Tax (STT) is a mandatory tax levied on transactions in the Indian stock market. It was introduced in 2004 to curb tax evasion and generate revenue for the government. STT applies to securities such as stocks, futures, options, mutual funds, and ETFs.
Let’s understand STT in detail through this infographic.
Wrapping Up
Securities Transaction Tax (STT) plays a crucial role for both investors and the market. While it increases the cost for investors and affects market liquidity, it also serves as a significant revenue source for the government. With the increased STT rates, investors must plan their investment strategies wisely.
*This article is for informational purposes only. This is not investment advice.
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