• Feb
  • 28
  • 2013

Budget – Securities Transaction Tax (STT) Reduced

The Finance Bill 2013-14 proposes reduction in the rates of Securities Transaction Tax (STT) in respect of certain transactions. Securities Transaction Tax (STT) on transactions in specified securities was introduced vide Finance (No.2) Act, 2004.It is proposed to amend section 98 of the Finance (No.2) Act, 2004 to reduce STT rates in the taxable securities transactions as indicated hereunder:-

TABLE

Sl.No.

Nature of taxable securities transaction

Payable by

Existing Rates
(in per cent)

Proposed Rates
(in per cent)

(1)

(2)

(3)

(4)

(5)

  1. 1.
Delivery based purchase of units of an equity

oriented fund entered into in a recognised stock exchange

Purchaser

0.1

Nil

  1. 2.
Delivery based sale of

units of an equity oriented

fund entered into in a recognised stock exchange

Seller

0.1

0.001

  1. 3.
Sale of a futures in securities Seller

0.0 17

0.01

  1. 4.
Sale of a unit of an equity oriented fund to the mutual fund Seller

0.25

0.00 1

The proposed amendments in the rates of securities transaction tax will be effective from 1st June, 2013 and will accordingly apply to any transaction made on or after that date.


One Response to “Budget – Securities Transaction Tax (STT) Reduced”

  1. LAKHAN MANDWAL says:

    in point 1.3 as per last finance bill it includes sale of option will b taxable at the rate .017 and in this budget is silent on sale of option so i think it also cover sale of option

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