Most Indian F&O traders look at gross P&L and ignore the silent tax on every trade: STT, brokerage, exchange charges, GST, SEBI fees and stamp duty. On frequent or small trades, these can quietly turn a winning strategy into a losing one. This guide breaks down exactly how F&O charges work in 2026 — with the formula and a free calculator.

The six charges on every F&O trade

Brokerage — what your broker charges per order. Discount brokers typically charge a flat ₹20 per executed order (or 0.03%, whichever is lower).
STT (Securities Transaction Tax) — charged on the sell side only. As of Budget 2026: 0.15% on options sell premium and 0.05% on futures sell turnover.
Exchange transaction charge — NSE's fee on turnover (futures) or premium (options). For discount brokers this also bundles the IPFT levy.
GST — 18%, charged on (brokerage + transaction charge + SEBI charge).
SEBI charges — a tiny ₹10 per crore of turnover.
Stamp duty — charged on the buy side only, varies by instrument.

The formula

Total charges = Brokerage + STT (sell side) + Exchange txn charge + SEBI + Stamp duty (buy side) + 18% GST on (brokerage + txn charge + SEBI). Your net P&L is gross P&L minus total charges, and your breakeven move is total charges ÷ quantity — the points the price must move just to cover costs.

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Use the free interactive tool — enter your buy/sell price and quantity and see STT, brokerage, GST and the breakeven move instantly, with live SEBI rates.

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Worked example: a Nifty options trade

Buy 750 units (≈10 lots) of a Nifty option at ₹100, sell at ₹120. Gross profit = (120 − 100) × 750 = ₹15,000. But STT (0.15% of sell premium = 0.15% × ₹90,000), the exchange charge on ₹165,000 of premium turnover, GST, SEBI and stamp duty plus ₹40 brokerage all come out of that. On bigger, more frequent trades the charge drag compounds — which is why tracking it per strategy matters.

Why per-strategy charge tracking matters

A 4-leg iron condor entered and exited is eight taxable transactions. A scalper doing 20 trades a day pays charges 40 times. CernoQuant decomposes charges per leg and per strategy on every synced trade, so you can see which strategies are actually profitable after costs — not just on paper.

Frequently Asked Questions

What is the STT on F&O in 2026?

After Budget 2026: 0.15% on options sell premium and 0.05% on futures sell turnover. STT is charged on the sell side only.

Is GST charged on STT?

No. GST (18%) is charged on brokerage + exchange transaction charge + SEBI charge — not on STT or stamp duty.

How do I reduce F&O charges?

Trade less frequently, use a discount broker with flat brokerage, avoid tiny-credit trades where charges exceed the edge, and track charges per strategy so you cut the loss-making, high-charge ones.

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CernoQuant breaks down STT and charges per leg, auto-synced from your broker. No credit card.

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Rates reflect SEBI/NSE schedules current at time of writing and may change via circular. CernoQuant is a trading journal and analytics platform, not a SEBI-registered investment advisor. For educational purposes only.

How to Calculate F&O Charges in India (STT, Brokerage, GST) — 2026