Section 98 of the Finance (No.2) Act, 2004 provides that the securities transaction tax on sale of an option in securities where option is not exercised is 0.017 per cent of the option premium. It is proposed to increase the rate from 0.017 per cent.to 0.05 per cent.

This amendment will take effect from 1st June, 2016.

Clause 230 of Finance Bill 2016

Clause 230 of the Bill seeks to amend section 98 of the Finance (No.2) Act, 2004 relating to charge of securities transaction tax.

The aforesaid section provides that the securities transaction tax on sale of an option in securities where option is not exercised is 0.017 per cent. of the option premium.

It is proposed to increase the said rate of securities transaction tax from 0.017 per cent. to 0.05 per cent.

It is also proposed to amend the section 11 3A so as to provide that the provisions of Chapter VII shall also not apply to taxable securities transactions entered into by any person for on a recognised stock exchange located in an International Financial Services Centre referred to in clause (q) of section 2 of the Special Economic Zones Act, 2005.

This amendment will take effect from 1st June, 2016.

[Clause 230]

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Category : Income Tax (20858)
Type : Articles (10788)
Tags : Budget 2016 (434)