STT on options

#1
I want to know about STT on options.

Please tell me by this scenario.

1) If i sell an option, STT is application to me. Now for eq. I sell nifty 5300 strike option at 75 and it is exercised or not. How much STT do i pay?
The amount that needs to be paid as STT is on only premium or total value like 50*75 - STT ?

2) If i buy and option and excerise it, i am supposed to pay STT, is the STT on the whole value or only on the premium paid or how much profit i made ?

3) If i buy an option on say 10th May 2010 at 50 rupees and square it on 12th may 2010, do i need to pay STT? if how on what amount ?

I looked up at nseindia.com and on TJ threads but still didnt get it cleared.

Thank you
 

trader.trends

Well-Known Member
#2
From NSE site:

Securities Transaction Tax

STT Computation
As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under:

Sr.No. Taxable securities transaction New rate from
01.06.2008 Payable by
A B C D
a Sale of an option in securities 0.017 per cent Seller
a Sale of an option in securities 0.017 per cent Seller
b Sale of an option in securities, where option is exercised 0.125 per cent Purchaser
c Sale of a futures in securities 0.017 per cent Seller

1. Value of taxable securities transaction relating to an option in securities shall be the option premium, in case of sale of an option in securities.


2. Value of taxable securities transaction relating to an option in securities shall be the settlement price, in case of sale of an option in securities, where option is exercised.
 
#3
from nse site:

Securities transaction tax

stt computation
as per the finance act 2004, and modified by finance act 2008 (18 of 2008) stt on the transactions executed on the exchange shall be as under:

Sr.no. Taxable securities transaction new rate from
01.06.2008 payable by
a b c d
a sale of an option in securities 0.017 per cent seller
a sale of an option in securities 0.017 per cent seller
b sale of an option in securities, where option is exercised 0.125 per cent purchaser
c sale of a futures in securities 0.017 per cent seller

1. Value of taxable securities transaction relating to an option in securities shall be the option premium, in case of sale of an option in securities.


2. Value of taxable securities transaction relating to an option in securities shall be the settlement price, in case of sale of an option in securities, where option is exercised.
:)..................................thanks