If write option and let it automatically square off, i thought STT will not apply on whole transaction because we have already paid the STT when we have write the option? Is i am ok?

[ShubhS9]

@RLM

is it same whether I am option buyer or option seller ?

STT of 0.125% is only on Long ITM Options, this does not apply to the seller as STT is already paid when trader takes Short position.

@RLM

0.05 % or 0.125% : does it make any big impact difference?

It isn’t that big of a impact.

Eg, at 0.05% if Nifty Option is at Rs. 100, STT will be 3.75 (100 * 0.05 / 100 * 75), at 0.125 the STT charged will be 9.4 (100 * 0.125 / 100 * 75).