Yes options do attract STT on the sell side. There is no STT on the buy side of any options trade. The big advantage in options in India is that the securities transaction tax (STT) is not charged on the notional value of the option but on the premium value. This is an advantage in options over futures, where the STT is charged on the notional value. What is this concept? If Nifty has a lot size of 75 and you buy a 11,000 strike call option at a premium of Rs.10, then the notional value of one lot will be Rs.820,000 (75*11,000) but the premium value will be Rs.750 (75*10). One of the main reasons for options trading growing in a big way in India is that the STT is imposed on the premium value and not on the notional value. In fact, the reason options volumes took off in a big way in India is purely due to the more relaxed methodology of valuing STT cost.