Securities Transaction Tax (STT) is tax on the value of securities transacted through a recognized stock exchange. The tax is not applicable otherwise. STT was originally introduced by the then finance minister, Shri P. Chidambaram in 2004. STT for delivery based equity trading was 0.125% on the turnover which is now reduced to 0.1%. In case of intra-day transaction the rate is 0.025% on the turnover. In case of Futures and Options Transaction, the tax rate was 0.017% which is now reduced to 0.01% on the sell-side only.
stt, security transaction tax, securities, stock exchange, commodity, currency transaction, equity transaction, intra-day transaction, future and options, trading, Capital Gain This article explains about security transaction tax. Also informs on various STT rate on different transactions. STT paid is also explained in terms of Long Term Capital Gain and Short Term Capital Gain.
Have you filed your Income-tax return yet? Click here to start now.