Since 1 April 2026, selling a futures lot costs 2.5 times as much in Securities Transaction Tax as it did in March. On one Nifty futures lot, that pushes the break-even from about 7 index points to about 15.
Options traders got a smaller increase. For a single-lot option buyer, STT is not even the largest line on the contract note.
Every example below rests on three stated assumptions: Nifty at 24,500, a lot size of 65 units, and flat brokerage of ₹20 per order. The brokerage figure is an illustration, not a quoted Axis Direct rate. Replace all three with your own numbers and the method still works.
Table of Contents
What changed on 1 April 2026
Budget 2026 raised STT on futures from 0.02% to 0.05% of the sell value, and on options premium from 0.10% to 0.15%. STT on exercised options rose from 0.125% to 0.15% of intrinsic value. The new rates apply to contracts entered into on or after 1 April 2026.
| Instrument | Old rate | New rate | Charged on |
|---|---|---|---|
| Futures | 0.02% | 0.05% | Sell value |
| Options (sold) | 0.10% | 0.15% | Premium |
| Options (exercised) | 0.125% | 0.15% | Intrinsic value |
The change was announced in the Union Budget on 1 February 2026. Equity delivery and intraday equity STT stayed where they were.
Why the headline percentages mislead
A 150% rise on futures sounds far larger than a 50% rise on options. The rupee impact depends on what the percentage is applied to.
Futures STT applies to the full contract value. Options STT applies to the premium, which is a small fraction of the contract value.
One Nifty futures lot at 24,500 has a contract value of about ₹15.9 lakh. One option lot bought at a ₹100 premium has a premium value of ₹6,500. The same percentage on those two bases produces very different rupee amounts.
Break-even on one Nifty futures lot
Selling one Nifty futures lot at 24,500 now costs ₹796.25 in STT, up from ₹318.50. With other charges, a round trip costs about ₹948, so the index must move roughly 14.6 points before you profit. Before the hike, that figure was about 7.2 points.
| Cost line | Before hike (₹) | After hike (₹) |
|---|---|---|
| STT on the sell leg | 318.50 | 796.25 |
| Brokerage, two orders (assumed) | 40.00 | 40.00 |
| Exchange charges, SEBI fee, stamp duty, GST | 111.59 | 111.59 |
| Total round trip | 470.09 | 947.84 |
| Break-even (index points) | 7.2 | 14.6 |
STT now makes up about 84% of the round-trip cost, up from about 68%. The other charges did not move. In futures, the tax is the cost.
Break-even on one Nifty options lot
Buying one Nifty options lot at a ₹100 premium and selling it later costs about ₹62.63 in charges after the hike, against ₹59.38 before. The premium must rise about ₹0.96 per unit to break even. STT is only about 16% of that cost; brokerage and GST make up most of it.
The table assumes the exit premium stays near ₹100, which is the situation at break-even.
| Cost line | Buy leg (₹) | Sell leg (₹) |
|---|---|---|
| Brokerage (assumed) | 20.00 | 20.00 |
| Exchange charges and SEBI fee | 2.32 | 2.32 |
| GST at 18% | 4.02 | 4.02 |
| Stamp duty | 0.20 | 0.00 |
| STT | 0.00 | 9.75 |
| Leg total | 26.54 | 36.09 |
The hike added ₹3.25 to this round trip, because the sell-leg STT went from ₹6.50 to ₹9.75. Options trading cost is dominated by per-order fees at this size, which is why the break-even moved by only about ₹0.05 per unit.
How to calculate your own break-even
Use this sequence for any lot, strike, or index:
- Multiply the entry premium by the lot quantity to get buy turnover. Do the same for the expected exit.
- Add brokerage for both orders, taken from your contract note or plan.
- Add exchange transaction charges and the SEBI fee. Brokers currently publish NSE options charges at 0.03553% of premium on each leg, and the SEBI fee at ₹10 per crore.
- Add 18% GST on the sum of brokerage, exchange charges, and SEBI fee. GST does not apply to STT or stamp duty.
- Add stamp duty of 0.003% on the buy-side premium, and STT of 0.15% on the sell-side premium.
- Divide the total by the lot quantity. The result is the rise in premium per unit you need just to break even.
For futures, swap in 0.00183% exchange charges, 0.002% stamp duty on the buy side, and 0.05% STT on the sell value. Exchanges revise their charges from time to time, so check each rate against your latest contract note and refer to the Axis Direct brokerage and charges page for the applicable charges and fees.
Where the hike costs you the most
Frequency is the multiplier. The extra STT is ₹477.75 per futures round trip and ₹3.25 per option round trip in the examples above. Ten futures round trips in a month add ₹4,777.50. Ten option round trips add ₹32.50.
Option sellers feel it differently. STT applies to every rupee of premium sold, and the increase works out to ₹5 for every ₹10,000 of premium. A seller who collects ₹1 lakh in premium pays ₹50 more than before.
Expiry exercise deserves a separate check. An in-the-money option exercised at expiry pays 0.15% on intrinsic value, up from 0.125%. At 500 points in the money on one lot, intrinsic value is ₹32,500, so STT is ₹48.75 against ₹40.63 earlier. For details on margin requirements and settlement, refer to the F&O margin and expiry settlement guide.
Limits of these examples
The figures leave out bid-ask spread and slippage. On illiquid strikes, those can add more than all the statutory charges combined.
Lower premiums shift the balance further toward brokerage. A ₹20 premium lot has the same fixed per-order costs on a much smaller turnover, so the break-even rises as a share of the premium. Percentage-based brokerage plans change the shape of the table entirely.
Traders who hold positions for weeks make fewer round trips, so the per-trade drag matters less to them. This guide covers NSE index F&O. Stock derivatives, currency, and commodity contracts carry different rates and are not covered here.
Pull your last ten F&O contract notes and total the STT, brokerage, and GST lines on each. Divide by the lot quantity and you have your actual break-even in points, which is the figure to compare against the average move your strategy captures. For a broader understanding of how options work, read our Options trading basics for beginners guide.
This article is educational and is not investment advice.
FAQs
What is the STT on F&O after April 2026?
STT on futures is 0.05% of the sell value. On options it is 0.15% of the premium when sold, and 0.15% of intrinsic value when an option is exercised. These rates apply to contracts entered into on or after 1 April 2026.
Is STT charged on both the buy and sell side in options?
STT on options premium is charged only on the sell leg. A buyer who exits by selling pays it on that sale. A buyer whose option is exercised pays STT on the intrinsic value instead. The buy leg itself carries no STT.
How do I calculate break-even in options trading?
Add brokerage, exchange charges, SEBI fee, GST, stamp duty, and STT across both legs. Divide the total by the lot quantity. The result is how much the premium must rise per unit before the trade stops losing money to charges.
