Since 1 April 2026, the securities transaction tax (STT) on futures is 0.05% and on options 0.15%. Many F&O traders are already discussing what the Union Budget expected on 1 February 2027 might do about it.
This article is based on what people are discussing on forums and social media and on public reports. Nothing here is confirmed and Scripwise takes no responsibility for any decision made on it.
Those who trade derivatives every week are keeping a close eye on their monthly tax and brokerage statements, and a lot of them are hoping that the Finance Minister will announce some relief. However, the Finance Ministry has not said anything about a rollback or a cut and so far what is being seen is only the expectation from the traders' side.
What changed and what traders want
The table displays the earlier STT rates, the current rates in force, and the relief that some traders hope for. The last column is only an expectation, because the Finance Ministry has not confirmed any such move.
| Segment | Old rate | Rate today | What traders ask for |
|---|---|---|---|
| Futures | 0.02% | 0.05% | A rollback or a cut (unconfirmed) |
| Options | 0.10% | 0.15% | A rollback or a cut (unconfirmed) |
Both the rates went up, and people chatting online are demanding that the rates go back to their earlier levels or at least see a partial cut.
The Income-tax Act 2025 has been in force from 1 April 2026. Under it, short-term capital gains (STCG) on listed equity are taxed at 20%, while long-term capital gains (LTCG is the profit from selling an asset such as shares, mutual fund units or property after holding it beyond the qualifying period. Read the full meaning of LTCG) are taxed at 12.5% on the amount above Rs 1.25 lakh.
The arguments on both sides
Traders who are involved in futures and options often claim that STT adds to their cost on every transaction, whether the trade turns out a profit or a loss. A number of them are also saying on forums that the higher costs will shrink the volumes in the derivatives segment and they hope that the Budget will address this.
According to public reports another view is that the higher rate was aimed at curbing speculation in the derivatives market. The government also earns a regular revenue from STT, and the reasons cited for the increase in the Budget on 1 February 2026 have not been taken back by the Finance Ministry.
Some people are also asking whether A foreign portfolio investor (FPI) is an overseas entity registered with SEBI that buys Indian shares and bonds for returns without taking control. Read the full meaning of FII and FPI and FPIs will be treated differently from retail traders in any change. No report confirms this, and it remains only a discussion.
These are expectations, not announcements.
