The STT full form is the Securities Transaction Tax (STT), and it is a type of financial transaction tax payable in India on every purchase or sale of securities that are listed on the Indian stock exchanges. This would include shares, derivatives or equity-oriented mutual funds investment units.he collected amount is then paid to the government. The charges and rate of STT are reflected on the contract notes which a broker provides to its clients for every execution of trades

The trading community, in general, wished this tax to be lowered as high taxes mean profits are compromised for investors.