STT Rate on Derivative Trade
The STT rate on derivative trades has been increased in the Union Budget 2024.
Before Budget 2024
Futures: 0.0125% on the sell side
Options: 0.125% on the intrinsic value of options bought and exercised 0.0625% on the premium for options shorted
After Budget 2024
Futures: 0.02% on the sell side
Options: 0.1% on the sale of an option
These rates are applicable to the Indian stock market.
Before Budget 2024
Futures: 0.0125% on the sell side
Options:0.125% on the intrinsic value of options bought and exercised 0.0625% on the premium for options shorted
After Budget 2024
Futures: 0.02% on the sell side
Options: 0.1% on the sale of an option.
Budget 2024 brought significant changes to the LTCG tax regime.
Increase in LTCG tax rate: The LTCG tax rate has been hiked from 10% to 12.5% for all financial and non-financial assets.
Removal of indexation benefits for property: For property sales, the indexation benefit (which reduces taxable gains) has been removed. This means that the entire capital gain will be subject to the 12.5% LTCG tax.
Exemption limit: An exemption limit of Rs. 1.25 lakh has been introduced for LTCG.