Budget 2026 has brought major news for people who actively trade in the stock market. Finance Minister Nirmala Sitharaman announced an increase in Securities Transaction Tax (STT) on Futures and Options (F&O) trades. This means higher trading costs for investors, especially those who trade daily in derivatives. Along with this, the government has also announced that capital gains tax will now apply on share buybacks. Earlier, buybacks were seen as a tax-efficient way for companies to return money to shareholders.Securities Transaction Tax (STT) is a tax charged on every security transaction done on recognised stock exchanges in India. It applies to equity shares, equity mutual funds, and derivative products like futures and options.India introduced STT on 1 October 2004. The aim was to make tax collection easier and reduce tax evasion. Later, even when Long Term Capital Gains (LTCG) tax was brought back in 2018, STT continued.