--- title: "What is STT on options and on exercise | RupeeCase" description: "From 1 Apr 2026 the STT on an option sale is 0.15% of premium, paid by the seller." source_url: "https://www.rupeecase.com/learn/questions/stt-on-options" --- The STT on an option sale has risen in steps and has been 0.15% of premium since 1 Apr 2026 STT on the sale of an option, as a percentage of premium, by the date each rate took effect. The seller pays it. Source: NSE circulars on STT rates, NSE/FATAX/32385, 56235, 63809 and 73524 (2016 to 2026). As of 1 Apr 2026. From 1 Apr 2026 the STT on an option sale is 0.15% of the premium, and the seller pays it. The same 0.15% applies when an option is exercised, but on the intrinsic value, and the buyer pays it. Until 31 Mar 2026 the exercise rate was 0.125%. The chart shows how the sale rate has moved in steps. On exercise the value taxed is the intrinsic value: the gap between the settlement price and the strike, times the quantity. That basis has applied since 1 Sep 2019. Before that date the settlement price itself was taxed, so an old contract note can look different from a new one. STT is a separate line on the contract note, apart from exchange transaction charges, stamp duty and the GST on brokerage. The rate is charged on the value of the trade, so a higher premium means a higher charge at the same rate. As an illustration, not a market price: a lot of 65 sold at Rs 100 a unit has a premium value of Rs 6,500, so the STT at 0.15% is Rs 9.75. SEBI's Aug 2026 study puts the STT paid by individual traders at about Rs 6,645 crore in FY26, up 35% on FY25. The cost calculator does the sums with the rates in one place. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) What is STT on options and on exercise?From 1 Apr 2026 the STT on an option sale is 0.15% of premium, paid by the seller, and the same 0.15% applies on exercise to the intrinsic value, paid by the buyer. The sale rate has risen in steps since 2016, and the chart shows each step. LGo deeper ## Where Learn teaches this. [Go deeperThe real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp duty7 min, Beginner](/learn/path-12/module-12-6-cost-of-an-fo-trade)[Go deeperExpiry and settlement: cash, physical, exercise and STT8 min, Beginner](/learn/path-14/module-14-6-expiry-and-settlement)[Try itF&O costs and STTEvery statutory charge on a trade at the 2026 rates.](/learn/tools/fo-cost-calculator) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, equity derivatives securities transaction tax (rates from 1 Apr 2026)](https://www.nseindia.com/static/products-services/equity-derivatives-securities-transaction-tax) NSE 2. [NSE/FATAX/73524, STT rates from 1 Apr 2026 (31 Mar 2026)](https://nsearchives.nseindia.com/content/circulars/FATAX73524.pdf) NSE 3. [SEBI, Profitability of individual traders in the equity derivatives segment, FY25 to FY26 (Aug 2026)](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) SEBI ?Questions people ask ## Related questions. 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