Reduction in the rate of Securities Transaction Tax (STT)

Securities Transaction Tax (STT) on transactions in specified securities was introduced vide Finance (No.2) Act, 2004.

It is proposed to reduce STT in Cash Delivery segment from the existing 0.125% to 0.1%. The proposed new rates along with details of old rates are given in the following table.

TABLE

Sl.No.Nature of taxable securities transactionPayable byExisting Rates %Proposed rates%
(1)

(2)

(3)

(4)

(5)

1.

Delivery based purchase of equity shares in a company/ units of an equity oriented fund entered into through a recognised stock exchange in India.Purchaser0.125

0.1

2.

Delivery based sale of equity shares in a company / units of an equity oriented fund entered into through a recognised stock exchange in India.Seller0.125

0.1

The proposed amendments in the rates of Securities Transaction Tax (STT) will be effective from the 1st  day of July, 2012 and will accordingly apply to any transaction made on or after that date.

More Under Income Tax

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Category : Income Tax (21105)
Type : Articles (11265)

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