Cost & Tax Calculator
The gap between gross and net P/L decides who survives. This applies every Indian statutory charge — STT, exchange, SEBI, stamp duty, GST and brokerage — to a real options round-trip, using the rates in force today (STT on sell-side options rose to 0.10% on 1 Oct 2024).
Charge breakdown
| Securities Transaction Tax (STT)0.10% of sell-side premium | ₹14.30 |
| Exchange transaction charge0.03503% of premium, both sides | ₹8.42 |
| SEBI turnover fee0.0001% of premium | ₹0.02 |
| Stamp duty0.003% of buy-side premium | ₹0.29 |
| GST18% on brokerage + exchange + SEBI | ₹8.72 |
| BrokerageFlat ₹20 × 2 orders (discount broker) | ₹40.00 |
| Total transaction cost | ₹71.75 |
The underlying premium must move 0.74% in your favour just to cover these costs before you make a single rupee.
Why option sellers feel costs less
STT is charged only on the sell side of the premium, and as a percentage of premium it's tiny relative to a sold option's payoff. But it compounds across many trades — a strategy with a thin edge can be turned net-negative by costs alone. Always backtest net, never gross.
One trap: if you let an ITM option expire instead of squaring off, STT on exercise is 0.125% of the full intrinsic settlement value — far larger than the 0.10% on premium. Square off ITM options before expiry.
What am I looking at?
Gross vs net
Gross is the profit before fees. Net is what actually lands in your account after every charge. The gap between them is bigger than most beginners expect.
The charge stack
Each Indian trade pays several small fees — STT, exchange, SEBI, stamp duty, GST and brokerage. Individually tiny, but together they add up, especially if you trade often.
Why frequency hurts
You pay these costs on every trade. A strategy with a thin edge can be turned into a loss just by trading too much. Fewer, better trades keep more of your money.
The expiry trap
Letting an in-the-money option expire triggers a much bigger STT (0.125% of full value). Square off before expiry to avoid the nasty surprise.
About the Options Cost & Tax Calculator
The Cost & Tax Calculator computes the full stack of Indian charges on an options round-trip so you know your true net profit or loss, not the gross. Enter your entry and exit premium, side and number of lots, and it itemises Securities Transaction Tax (STT), the exchange transaction charge, the SEBI turnover fee, stamp duty, GST and brokerage — then shows the net after everything. It is the antidote to the common beginner mistake of ignoring costs and over-estimating returns.
What you can do
- Enter entry premium, exit premium, buy/sell side and number of lots.
- See every charge itemised: STT, exchange, SEBI, stamp duty, GST, brokerage.
- Read the net P&L after all charges — the number that actually hits your account.
- Compare how costs eat a larger share of thin, high-frequency trades.
Worked example — a NIFTY options round-trip
Buy one lot of a NIFTY option at ₹150 and sell it at ₹220 (lot size 65). Gross profit is (220 − 150) × 65 = ₹4,550. The charges: STT ≈ ₹14.30 (0.10% of the ₹14,300 sell value), exchange transaction ≈ ₹8.42 (0.03503% of the ₹24,050 combined turnover), SEBI fee ≈ ₹0.02, stamp duty ≈ ₹0.29 (0.003% of the buy value), brokerage ₹40 (₹20 × 2 orders) and GST ≈ ₹8.72 (18% on brokerage + exchange + SEBI). Total charges ≈ ₹71.75, so the net profit is about ₹4,478. On a small trade those charges are a rounding error; on a thin scalp they can flip a "profit" into a loss.
Frequently asked
What is STT on options in India?
Securities Transaction Tax on options is charged at 0.10% of the premium on the sell side of the trade. On a ₹14,300 sell value that is about ₹14.30.
What are the total charges on a NIFTY options trade?
On a one-lot NIFTY options round-trip bought at ₹150 and sold at ₹220, the total charges — STT, exchange, SEBI, stamp duty, GST and ₹40 brokerage — come to roughly ₹72, leaving a net profit near ₹4,478 on a ₹4,550 gross.
Why do trading costs matter so much for F&O?
Because charges are levied on turnover, not profit, they take a fixed bite regardless of outcome. For frequent or thin trades that bite can exceed the edge — a major reason many retail F&O traders end up net losers.
Learn the concepts
Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss; SEBI studies show the large majority of individual F&O traders lose money. Tapetide is not a SEBI-registered research analyst or investment adviser.