Notification No. 1/2005, Dated 6-1-2005
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, namely :—
1. (1) These rules may be called the Income-tax (First Amendment) Rules, 2005.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962,—
(A) after rule 20A, the following rule shall be inserted, namely:—
“20AB. Evidence of payment of security transaction tax for claiming deduction under section 88E— The evidence of payment of securities transaction tax which is required to be furnished along with the return of income by the assessee under first proviso to section 88E,—
(i) on value of transaction entered into by him in a recognised stock exchange, shall be in Form No. 10DB and shall be verified in the manner indicated therein;
(ii) on value of transaction of sale, by him, of a unit of an equity oriented fund to the Mutual Fund, shall be in Form No. 10DC and shall be verified in the manner indicated therein.”
(B) In Appendix II, after Form No. 10DA, the following Forms shall be inserted, namely:—
“FORM NO. 10DB
(See rule 20AB)
Form for evidence of payment of securities transaction tax on transactions entered in a recognised stock exchange
1. Name of the assessee:
2. Address of the assessee:
3. Permanent Account Number (PAN) of the assessee:
4. MAPIN of the assessee:
5. Name of the Stock Exchange in which transaction entered into:
6. Financial year:
7. Name of the stock broker:
8. Address of the stock broker:
9. Stock broker code:
10. Details of value of securities transactions and securities transaction tax collected from the assessee:
| Client code number | Code* of transaction | Value of transactions entered into during the financial year | Total securities transaction tax collected from the assessee during the financial year | Value of transactions(included in value given in column 3)entered into in the course of business by the assessee | Securities transaction tax collected on value of transactions given in column 5 |
| 1 | 2 | 3 | 4 | 5 | 6 |
| 01 | |||||
| 02 | |||||
| 03 | |||||
| 04 | |||||
| 05 | |||||
| Total |
Verification
I,……………..(full name in block letters), son/daughter of…………..solemnly declare that to the best of my knowledge and belief the information given in this Form is correct and complete and that the total amount of securities transaction tax shown therein is truly stated and is in accordance with the provisions of Chapter VII of the Finance (No. 2) Act, 2004 and Securities Transaction Tax Rules, 2004.
Date…………..
Place………….
(Name and Signature of the assessee)
*CODES IN RESPECT OF TAXABLE SECURITIES TRANSACTION
| S. No. | Nature of Transaction | Code |
| 1. | Purchase of an equity share in a company or a unit of an equity oriented fund, where— | 01 |
| (a) the transaction of such purchase is entered into in a recognised stock exchange; and | ||
| (b) the contract for the purchase of such share or unit is settled by the actual delivery or transfer of such share or unit. | ||
| 2. | Sale of an equity share in a company or a unit of an equity oriented fund, where— | 02 |
| (a) the transaction of such sale is entered into in a recognised stock exchange; and | ||
| (b) the contract for the sale of such share or unit is settled by the actual delivery or transfer of such share or unit. | ||
| 3. | Sale of an equity share in a company or a unit of an equity oriented fund, where— | 03 |
| (a) the transaction of such sale is entered into in a recognised stock exchange; and | ||
| (b) the contract for the sale of such share or unit is settled otherwise than by the actual delivery or transfer of such share or unit. | ||
| 4. | Sale of a derivative being “option in securities”, where the transaction of such sale is entered into in a recognised stock exchange. | 04 |
| 5. | Sale of a derivative being “futures”, where the transaction of such sale is entered into in a recognised stock exchange. | 05 |
Instructions : (i)Where an assessee has entered into transactions in a stock exchange under different client code through the same stock broker, details in this Form be filled separately for each such client code.
(ii) Separate Form be furnished in respect of transactions entered into a different stock exchanges and also for the transactions entered in same stock exchange through different stock brokers.
(iii) In column 4 of Table of item 10, fill the details of securities transaction tax collected by the stock broker from the assessee.
(iv) Where the assessee entering into a transaction is a stock broker on which securities transaction tax has to be paid by him, item 1 and item 7 shall be same and such assessee shall, in column 4 of the Table of item 10, fill the details of securities transaction tax collected from him by the stock exchange.
FORM NO. 10DC
(See rule 20AB)
Form for evidence of payment of securities transaction tax on transactions of sale of unit of equity oriented fund to the Mutual Fund
1. Name of the assessee:
2. Address of the assessee:
3. Permanent Account Number (PAN) of the assessee:
4. MAPIN of the assessee:
5. Name of the Mutual Fund having the equity oriented fund of which units sold by the assessee to that Fund:
6. Address of the Mutual Fund referred to in item 5:
- Details of value of securities transactions and securities transaction tax collected from the person:
| Name of equity oriented fund | Unique client code of the fund | Folio number of assessee | Value of transactions entered into during the financial | Total securities transaction tax collected from the assessee during the financial year | Value of transaction (included in value given in column 5) entered into the course of business by the assessee | Securities transactions tax collected on value of transactions given in column 7 |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Total |
Verification
I,……………..(full name in block letters), son/daughter of…………..solemnly declare that to the best of my knowledge and belief the information given in this Form is correct and complete and that the total amount of securities transaction tax shown therein is truly stated and is in accordance with the provisions of Chapter VII of the Finance (No. 2) Act, 2004 and Securities Transaction Tax Rules, 2004.
Date…………..
Place………….
(Name and Signature of the assessee)
Instructions :
(i) This Form be furnished separately for the transactions with each Mutual Fund.
(ii) Details of securities transaction tax paid on sale of units of various equity oriented fund under a Mutual Fund be given separately.”
