Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Thank you Zerodha.

yes, indeed. I am little confused. if I understood correctly:

1. when Mr. A sells options to Mr. B then at the time of sale, Mr. A pays STT @ 0.017% on the premium.

2. At the time of expiry, Mr. B will try his best to sell this option if that option is In-the-money. Now, if Mr. B can sell that option then Mr. B needs to pay STT @ 0.017% on the premium.

3. Now, there are two possibilities. One that Mr. B sold back that option to Mr. A and Mr. A held it till expiry and option was In-the-money. Mr. A did NOT pay any STT for that particular option contract even if it expired in the money, right?
Second possibility is that Mr. B sold that option to Mr. C (anyone other than Mr. A) and if Mr. C held it till expiry and option was in the money, then Mr.C paid much higher STT @ 0.125% on settlement price, right?

So please confirm that answer to my real/original question:
Is STT applicable when I buy back my previously sold call or put option and let it expire In-the-money ?

is

STT is NOT applicable when you buy back your previously sold options and let it expire in-the-money.

Now, second doubt: If I sell option for SP X and buy same type of option (i.e. call or put) for SP Y ( X and Y are different), and if I keep both the options till expiry and both are in the money, I guess, since SP is different, I will have to pay much higher STT on the bought option, right?

Thanks in advance.
ez.

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