Originally Posted by Sunil

No such charge by NSE exists. It's a lacuna in the IT Act regarding STT - whether intentional or otherwise - a behind-the-door tactic to increase STT collections. So, if you don't sell (square off) your option, in which you are long, before expiry, and if it has value (if you are in profit), then obviously it is taken as option exercise. And then, you are liable to pay a higher amount of STT. Quoting an illustration from other forum:

So if STT should be abolished, then these charges should be completely wiped out.. good news...

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Originally Posted by WOD

So if STT should be abolished, then these charges should be completely wiped out.. good news...

just to remind you of "Short term capital gains tax" which existed before STT - it is applicable to non-full-time traders

but for full-time traders, as it is, all such P/L goes as "Income from Business" - removal of STT would be a big boon as not only total costs is reduced by 1/3rd, but also the pain reduces, as STT is deducted whether you are in profit or loss (else, you pay tax only if you earn income from such trading).


Let's see what the new tax code has in store for this aspect
Here's a glimpse:
New tax code may penalise long term investors - Forbes India -