F&O charges in India: brokerage, STT, GST and stamp duty on options

Updated 24 October 2026 · 5 min read

Every option trade in India pays brokerage, STT on the sell side, exchange transaction charges, a SEBI fee, GST and stamp duty on the buy side. Here are the FY 2026-27 rates and a worked example for one round trip.

The charges on an options trade

Charges on index options are calculated on the premium turnover (premium × quantity), not on the contract's notional value. These are the rates for FY 2026-27 at a typical discount broker:

Brokerage: ₹20 per executed order at most discount brokers.
STT (securities transaction tax): 0.15% of premium on the sell side only, up from 0.10% from 1 April 2026.
Exchange transaction charges: 0.03553% of premium on NSE (Nifty, Bank Nifty) and 0.0325% on BSE (Sensex).
SEBI turnover fee: ₹10 per crore of turnover.
GST: 18% on brokerage, exchange charges and the SEBI fee (not on STT or stamp duty).
Stamp duty: 0.003% of premium on the buy side only.

A worked example

Example numbers. You buy Nifty options with ₹10,000 of premium and later sell them for ₹12,000.

Buy order: brokerage ₹20, exchange charges ₹3.55, SEBI fee ₹0.01, GST ₹4.24, stamp duty ₹0.30. About ₹28.10.

Sell order: brokerage ₹20, STT ₹18.00, exchange charges ₹4.26, SEBI fee ₹0.01, GST ₹4.37. About ₹46.65.

The round trip costs about ₹75, so the ₹2,000 gross profit is about ₹1,925 net, before income tax. On a small trade the flat ₹40 of brokerage is the biggest part; on large premiums STT takes over.

STT when an option is exercised

If you hold an in-the-money option to expiry instead of selling it, STT is charged at 0.15% of the intrinsic value (settlement price minus strike, times quantity), not on the premium. On deep in-the-money positions that can be far larger than the STT on simply selling before expiry, which is why many traders close ITM options on expiry day.

Why charges matter more than they look

A few rupees per order adds up quickly for someone placing many small trades. Twenty round trips a week at ₹75 each is ₹1,500 a week, or about ₹78,000 a year, before a single trade has to be right. Always judge a strategy on its profit after charges.

Rates differ by broker, and exchanges revise their charges, so your contract note is the final word. Income tax on F&O gains is separate: they are normally treated as business income.

Every ShareSetu practice order is charged like a real one, so you see your results after costs.

Practise with real charges

Questions

What is the STT on options in 2026?

From 1 April 2026, STT on options is 0.15% of the premium on the sell side, and 0.15% of the intrinsic value when an in-the-money option is exercised at expiry.

Is stamp duty charged on selling options?

No. Stamp duty on options is 0.003% of premium on the buy side only.

Does ShareSetu charge these in paper trading?

Yes. Every practice order pays brokerage, STT, exchange charges, the SEBI fee, GST and stamp duty at these rates, so practice results are after charges.

For education only. This is not investment advice or a recommendation to buy or sell any security. Derivatives carry substantial risk of loss. Rates and rules change; check your broker's contract note and the exchange's circulars.