New Delhi, Feb. 1 -- The hike announced in the Securities Transaction Tax (STT) during the Union Budget 2026 is only on futures and options (F&O) trades, and the aim is to increase the tax revenue as well as put a curb on speculative trading options, Revenue Secretary Arvind Shrivastav said on Sunday.

The government has proposed a significant hike in STT on futures and options trades. For futures contracts, STT has been increased from 0.02 per cent to 0.05 per cent. For options, STT on the premium has been raised from 0.1 per cent to 0.15 per cent, while STT on the exercise of options has also been increased to 0.15 per cent.

Earlier in the day, the Income Tax Department issued a clarification on the hike in STT on futures and options t...