Budget 2026 STT Hike: Friends, nowadays, the first thing that comes to mind when you hear about the stock market is F&O trading. In the last few years, millions of young people have entered the market hoping to make big profits with little money.
But Budget 2026 has significantly changed this picture. The government has drastically increased the Securities Transaction Tax (STT) on F&O. Some consider this a necessary reform, while others say it will crize traders.
Why is the government’s move considered so harsh?
The Finance Minister clearly indicated in the budget that it is necessary to curb the rampant speculation happening in the name of F&O. The tax on futures has been increased by almost 1.5 times, and options trading has also become more expensive.
The government believes that a large number of small investors are taking risks without understanding them and are trading with borrowed money. Some experts are calling this decision a step to protect young people.
The opinions of experts are completely divided
Nithin Kamath of Zerodha says that the increase in STT will significantly increase the cost of trading. It will become even more difficult for small traders to make a profit. On the other hand, well-known investor Shankar Sharma considers this a step in the right direction. He believes that F&O had become like an addiction for many young people, and this decision will give them a chance to recover. Both points of view seem valid, but the impact will directly affect the average trader.
What will be the impact on your pocket?
Those who trade in options or futures daily will now see a significant increase in their overall costs. What used to be profitable even with small price movements may now result in losses. This change will be most burdensome for those who frequently buy and sell. After the new rules, only those who work with discipline and the right strategy will be able to survive.
The fine line between trading and speculation
The biggest debate surrounding F&O is whether it is trading or speculation. On paper, it is a hedging tool, but in reality, most people consider it a shortcut to making quick money. The savings of many families have been lost because of this. The government argues that increasing taxes will curb impulsive speculation and encourage people to return to long-term investments.
Concerns of Small Investors
The decision has received mixed reactions on social media. Some say the government has shut down a source of income, while others believe it will make the market calmer and more stable. Those who traded solely based on tips may face difficulties. Now, knowledge and patience will be essential to survive in the market.
What the Future Holds
Experts believe that F&O trading will not disappear entirely, but the approach will change. People will engage in fewer, more selective, and well-considered trades. Brokerage firms will also introduce new strategies to mitigate the increased costs. This change is also an attempt to mature the market.
Only Time Will Tell
Like any major decision, the results of this move will not be immediately apparent. It will take a few months to see if speculation has truly decreased or if it has only increased the difficulties for traders. One thing is certain: F&O trading will no longer be the easy game it once was.
Disclaimer: This article is for informational and educational purposes only. Before making any trading or investment decisions, please consult a qualified financial advisor. The market involves risks, and the investor is solely responsible for any profits or losses.
Also read:
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Income Tax Collection 2026: Which Country Collects the Most Tax India, US, China or Pakistan?
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