Budget Proposes Hike In Securities Transaction Tax On Futures And Options

The Union Budget 2026–27 on Sunday proposed an increase in Securities Transaction Tax (STT) on futures and options trades.

Presenting the Budget, Finance Minister Nirmala Sitharaman announced higher STT rates for derivative transactions. “I propose to raise the STT on Futures to 0.05 per cent from the present 0.02 per cent,” she said.

The Finance Minister also proposed a hike in STT on options. “STT on options premium and exercise of options are both proposed to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent respectively,” Sitharaman said.

At present, STT on futures transactions is levied at 0.02 percent. In the case of options, STT is currently charged at 0.10 percent on the premium and 0.125 per cent on the exercise of options.