How To Compute Stt In Options

B

beginner_av

Well-Known Member
#4
#4
Till now - seller - on notional value e.g. 1000 lot size * (200 strike price + option price/premium at 200)
From next fin year (1st april OR after budget is passed)
seller - on premium received.
 
SavantGarde

SavantGarde

Well-Known Member
#5
#5
STT Presently Levied Only To Sellers & It Is 0.017%

Example Of How It Is Levied Presently:
1) Lot Size Of 50
2) Strike Of 6000
3) Premium For Which It Is Sold Is 30

STT= {(6000+30)*50}*0.017%

STT Would Be 51.255

Example Of How It Will Be Levied After The Notification:

1) Lot Size Of 50
2) Strike Of 6000
3) Premium For Which It Is Sold Is 30

STT= (30*50)*0.017%

STT Would Be 0.255 Paise

SavantGarde
 
L

leo_3455

Active Member
#7
#7
with effect from June 1, 2008

Currently, in the case of sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange, the STT is at the rate of 0.017% and is payable by the seller. The Budget proposes to amend sections 98 and 99 of Chapter VII of the Finance (No 2) Act, 2004 to provide that with effect from June 1, 2008:

(i) In case of sale of an option in securities, STT shall be levied at the rate of 0.017% of the option premium and shall be paid by the seller

(ii) In case of sale of an option in securities, where option is exercised, STT shall be levied at the rate of 0.125% of the settlement price and shall be paid by the purchaser; and

(iii) In case of sale of a futures in securities, STT shall be levied at 0.017% and shall be payable by the seller.

Therefore, the amount of STT in the case of options payable by a purchaser and seller would now change as compared to earlier.

(citing from financialexpress .com / news / The-STT-amendment-impact / 279196/ 0)
 
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