STT

Impact of STT hike on Foreign Portfolio Investors

Income Tax - Discover the impact of the recent Security Transaction Tax (STT) hike on Foreign Portfolio Investors (FPIs). Explore the background, analysis, and potential relocation scenarios for FPIs in response to the increased STT rates. Disclaimer: This article provides personal views and does not constitute professional advice....

Exemption from capital gains on sale of equity shares

Income Tax - Earlier to Finance Act 2017, section 10(38) of Income Tax Act provided opportunity to tax-evaders. It provided the exemption of tax on the capital gains arising on sale of equity shares after one year of its acquisition, if transaction was chargeable to securities transaction tax (STT)....

STT on option in securities on difference between strike & settlement price

Income Tax - As per the existing provisions section 99 of the Finance (No.2) Act, 2004, the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised, shall be, the settlement price. In order to rationalise the levy of STT where the option is exercised, it is proposed to amend […]...

Securities Transaction Tax (STT)

Income Tax - Securities Transaction Tax (STT), is the tax deduction that is applied to all your equity transactions. Introduced in the 2004 Union Budget by the then Finance Minister Mr. P Chidambaram, the deduction is to ensure that gains arising from securities transaction are taxed at source, thus preventing individuals from evading capital gains ta...

Sec 10(38), CBDT provides host of exemptions

Income Tax - This article summarises the amendment brought in Section 10(38) of the Income Tax Act, 1961, the exemptions provided under the section through notification issued by the central government and discusses few situations where exemption may not be available. ...

Budget – Securities Transaction Tax (STT) Reduced

Income Tax - 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...

Exemption to LTCG on sale of unlisted securities in IPO + STT 0.2% on Such Sales

Income Tax - To promote further depth of the capital markets through listing of companies, I propose to extend the benefit of tax exemption on long term capital gains to the sale of unlisted securities in an initial public offer. For this purpose, I propose to provide the levy of Securities Transaction Tax (STT) at the rate of 0.2 per cent on such sal...

Budget 2012 – Govt likely to reduce STT in Budget

Income Tax - The Finance Ministry is likely to reduce Securities Transaction Tax (STT) on equity trade in the forthcoming Budget in a bid to boost the capital market despite pressure to improve revenue collection. The ministry, however, may not revisit the issue of Commodities Transaction Tax (CTT), which was aborted in 2009 after protests by industry...

Government has no proposal to lower the securities transaction tax

Income Tax - The government has no proposal to lower the securities transaction tax (STT) for capital market transactions, SS Palanimanickam, Minister of State for Finance, told lawmakers. Traders have been lobbying for reducing the securities transaction tax, arguing that the move will help revive the lacklustre stock markets....

Revenue department opposed abolition of Securities Transaction Tax (STT)

Income Tax - The revenue department is opposed to abolition of Securities Transaction Tax (STT) as the levy helps keep a tab on investments in markets and track flow of unaccounted funds. STT helps in overall regulation and keep a check on cost involved. The stock exchanges have been asking the Finance Ministry to abolish STT arguing that such a step ...

Revenue Fails to Substantiate Alleged Bogus Loss; Transaction Executed via BSE with STT Payment Deemed Genuine

Duxton Hills Builders [P] Ltd Vs ACIT (ITAT Delhi) - Duxton Hills Builders vs ACIT - ITAT Delhi rules on short-term capital loss. Transaction on Bombay Stock Exchange with STT deemed genuine, not sham or bogus....

Non-exempt capital loss cannot be set off against exempt capital gains

G.K. Ramamurthy Vs. JCIT (ITAT Mumbai) - S. 10 (38) inserted w.e.f. 1.10.2004 provides that long-term capital gains (LTCG) on which security transaction tax (STT) is paid shall not be included in total income. The assessee earned long term capital gain (LTCG) of Rs. 33,01,57,200 on sale of shares after 1.10.2004 in respect of which STT was...

Short term capital losses subject to STT can be set off against Short term capital gains not subject to STT

First State Investments (Hongkong) Ltd. [A/C First State Asia Innovation & Technology Fund] Vs. ADIT (ITAT Delhi) - The Finance Act, 2004 introduced section 111A in the Income-tax Act, 1961 (the Act) prescribing a tax rate of 10 percent on Short Term Capital Gains (STCG) arising from sale of shares on or after 1 October 2004 on a stock exchange which are subject to Securities Transaction Tax (STT)....

Format, Procedure & Guidelines to submit Form No. 1, 2 & 2A for STT

Notification No. 2 of 2022-Income Tax-DGIT - (24/06/2022) - Form No. 1, Form No. 2 and Form No. 2A is required to be signed, verified and furnished by the class of person responsible as defined in the Securities Transaction Rules 2004...

CBDT Press Release on Tax collections during first quarter

Press Release No.402/92/2006-MC - (06/07/2010) - Net direct tax collections during first quarters of the present fiscal (up to June 2010) stood at Rs.68,675 crore, up from Rs.59,465 crore in the same period last fiscal, registering a growth of 15.49 percent. Growth in Corporate Taxes was 21.65 percent (Rs.43,439 crore as against Rs.35,709 crore), ...

Securities lending/borrowing Scheme of Securities and Exchange Board

Circular No. 2/2008-Income Tax - (22/02/2008) - CIRCULAR NO-2/2008-Income Tax Securities and Exchange Board of India (SEBI) vide circular No.-MRD/DoP/SE/Dep/ Cir14/2007 dated 20/12/2007, has decided to permit all classes of investors (individuals, institutional, etc.) to short sell. Further, with a view to provide a mechanism for borrowing of sec...

Recent Posts in "STT"

Revenue Fails to Substantiate Alleged Bogus Loss; Transaction Executed via BSE with STT Payment Deemed Genuine

Duxton Hills Builders [P] Ltd Vs ACIT (ITAT Delhi)

Duxton Hills Builders vs ACIT - ITAT Delhi rules on short-term capital loss. Transaction on Bombay Stock Exchange with STT deemed genuine, not sham or bogus....

Impact of STT hike on Foreign Portfolio Investors

Discover the impact of the recent Security Transaction Tax (STT) hike on Foreign Portfolio Investors (FPIs). Explore the background, analysis, and potential relocation scenarios for FPIs in response to the increased STT rates. Disclaimer: This article provides personal views and does not constitute professional advice....

Posted Under: Income Tax |

Format, Procedure & Guidelines to submit Form No. 1, 2 & 2A for STT

Notification No. 2 of 2022-Income Tax-DGIT 24/06/2022

Form No. 1, Form No. 2 and Form No. 2A is required to be signed, verified and furnished by the class of person responsible as defined in the Securities Transaction Rules 2004...

Exemption from capital gains on sale of equity shares

Earlier to Finance Act 2017, section 10(38) of Income Tax Act provided opportunity to tax-evaders. It provided the exemption of tax on the capital gains arising on sale of equity shares after one year of its acquisition, if transaction was chargeable to securities transaction tax (STT)....

Posted Under: Income Tax |

STT on option in securities on difference between strike & settlement price

As per the existing provisions section 99 of the Finance (No.2) Act, 2004, the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised, shall be, the settlement price. In order to rationalise the levy of STT where the option is exercised, it is proposed to amend […]...

Posted Under: Income Tax |

Securities Transaction Tax (STT)

Securities Transaction Tax (STT), is the tax deduction that is applied to all your equity transactions. Introduced in the 2004 Union Budget by the then Finance Minister Mr. P Chidambaram, the deduction is to ensure that gains arising from securities transaction are taxed at source, thus preventing individuals from evading capital gains ta...

Posted Under: Income Tax |

Sec 10(38), CBDT provides host of exemptions

This article summarises the amendment brought in Section 10(38) of the Income Tax Act, 1961, the exemptions provided under the section through notification issued by the central government and discusses few situations where exemption may not be available. ...

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...

Posted Under: Income Tax |

Exemption to LTCG on sale of unlisted securities in IPO + STT 0.2% on Such Sales

To promote further depth of the capital markets through listing of companies, I propose to extend the benefit of tax exemption on long term capital gains to the sale of unlisted securities in an initial public offer. For this purpose, I propose to provide the levy of Securities Transaction Tax (STT) at the rate of 0.2 per cent on such sal...

Posted Under: Income Tax |

STT rate on Delivery Based Share Transactions from 01.07.2012

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. ...

Posted Under: Income Tax |

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