Cryptocurrency Q&A
How is the STT calculated?
How is the STT calculated?
KpopHarmonySoul
Sun Aug 11 2024
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6 answers
1728
Can you please explain to me in simple terms how the STT, or the Security Token Tax, is calculated? I'm a bit confused about the process and I would like to understand the factors that influence its computation. Is it based on the transaction value, the type of asset involved, or both? Also, are there any exemptions or deductions that can be taken into account when calculating the STT? Thank you for your assistance in clarifying this matter.
6 answers
amelia_jackson_environmentalist
Mon Aug 12 2024
The lot size of NIFTY, which is 25, is then incorporated into the calculation. This value signifies the quantity of the underlying asset represented by a single lot of NIFTY.
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Enrico
Mon Aug 12 2024
The Securities Transaction Tax (STT) applicable for Equity and Index trades on the Futures sell side turnover is standardized at 0.01%. This rate ensures a consistent and predictable tax obligation for traders engaging in these markets.
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CosmicDream
Mon Aug 12 2024
To calculate the STT for a given transaction, one must multiply the STT rate by the selling price, the number of lots traded, and the lot size of the index or equity in question. For example, let's consider a trade involving NIFTY.
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GeishaGrace
Mon Aug 12 2024
When these three factors are multiplied together, the result is the STT payable on the transaction. For the given example, the calculation would be 0.01% * 8700 * 10 * 25 = Rs. 217.50.
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CryptoMaven
Mon Aug 12 2024
In this scenario, the STT rate of 0.01% is applied to the selling price of 8700. This serves as the base for the calculation, representing the value of the security being sold.
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