categorise ? Securities Transaction Tax (STT) is a tax levied on the purchase or sale of securities listed on stock exchanges in India. The securities include shares, equity-oriented mutual funds, and derivatives. The categorization of STT is based on the type of transaction and the nature of the security. Below are the main categories of STT: 1. Equity Shares Delivery-Based Transactions Purchase of equity shares: STT is paid by the buyer. Sale of equity shares: STT is paid by the seller. Non-Delivery-Based Transactions (Intraday Trading) Sale of equity shares: STT is paid by the seller. 2. Equity-Oriented Mutual Funds Delivery-Based Transactions Purchase of units: STT is paid by the buyer. Sale of units: STT is paid by the seller. 3. Derivatives Sale of Futures and Options (F&O): STT is paid by the seller. The STT rate for derivatives is lower compared to delivery-based equity transactions. 4. Buyback of Shares Applicable when a company buys back its own shares. STT is generally paid by the seller.