Section 98 - Charge of securities transaction tax - Finance (No. 2) Act, 2004

98. Charge of securities transaction tax.- On and from the commencement of this Chapter, there shall be charged a securities transaction tax in respect of the taxable securities transaction specified in column (2) of the Table below, at the rate specified in the corresponding entry in column (3) of the said Table, on the value of such transaction and such tax shall be payable by the purchaser or the seller, specified in the corresponding entry in column (4) of the said Table: Sl. No Taxable securities transaction Rate Payable by (1) (2) (3) (4) Purchase of an equity share in a company 14 [or a unit of a business trust] 7 [***] where_ 1 [ 0.1 per cent ] Purchaser (a) the transaction of such purchase is entered into in a recognised stock exchange; and (b) the contract for the purchase of such share 15 [or unit] 8 [***] is settled by the actual delivery or transfer of such share 15 [or unit] 8 [***] (2) Sale of an equity share in a company 16 [or a unit of a business trust] 9 [***] where_ 2 [ 0.1 per cent ] Seller (a) the transaction of such sale is entered into in a recognised stock exchange; and (b) the contract for the sale of such share 17 [or unit] 10 [***] is settled by the actual delivery or transfer of such share 17 [or unit] 10 [***] 11 [2A Sale of a unit of an equity oriented fund, where- 0.001 per cent Seller (a) the transaction of such sale is entered into in a recognised stock exchange; and (b) the contract for the sale of such unit is settled by the actual delivery or transfer of such unit.] (3) Sale of an equity share in a company or a unit of an equity oriented fund 18 [or a unit of a business trust], where_ 3 [ 0.025 per cent. ] Seller (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 [(4) (a) Sale of an option in securities 24 [ 0.1 per cent. ] Seller (b) Sale of an option in securities, where option is exercised 0.125 per cent. Purchaser (c) Sale of a futures in securities 25 [ 0.02 per cent. ] Seller ] (5) Sale of a unit of an equity oriented fund to the 13 [ 0.001 ] per cent. ] Seller` 21 [ 5A. Sale or surrender or redemption of a unit of an equity oriented fund to an insurance company, on maturity or partial withdrawal, with respect to unit linked insurance policy issued by such insurance company on or after the first day of February, 2021. [0.001] per cent. Seller ] 6 [ (6) Sale of unlisted equity shares under an offer for sale referred to in sub-clause (aa) of clause (13) of section 97. 0.2 per cent Seller ] 19 [(7) Sale of unlisted units of a business trust under an offer for sale referred to in sub-clause (ab) of clause (13) of section 97. 0.2 per cent. Seller] ---------------------------------------- Notes:- 1. Substituted vide Finance Act, 2005, before it was read as:- 0.075 per cent. Further Substituted vide Finance Act, 2006 , before it was read as:- 0.1 per cent. Further Substituted vide Finance Act, 2012 , w.e.f. 01-07-2012, before it was read as;- 0.125 per cent 2. Substituted vide Finance Act, 2005 , before it was read as:- 0.075 per cent. Further Substituted vide Finance Act, 2006 , before it was read as:- 0.1 per cent. Further Substituted vide Finance Act, 2012 , w.e.f. 01-07-2012, before it was read as;- 0.125 per cent 3. Substituted vide Finance Act, 2005 , before it was read as:- 0.015 per cent. Further Substituted vide Finance Act, 2006 , before it was read as:- 0.02 per cent. 4. Substituted vide Finance Act, 2005 , before it was read as:- 0.01 per cent. Further Substituted vide Finance Act, 2006 , before it was read as:- 0.0133 per cent. Further Substituted vide Finance Act, 2008 , before it was read as:- (4) Sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange. 4 [ 0.017 per cent. ] Seller 5. Substituted vide Finance Act, 2005 , before it was read as:- 0.15 per cent. Further Substituted vide Finance Act, 2006 , before it was read as:- 0.2 per cent 6. Inserted vide Finance Act, 2012 , w.e.f. 01-07-2012, 7. Omitted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, or a unit of an equity oriented fund, 8. Omitted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, or unit 9. Omitted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, or a unit of an equity oriented fund, 10. Omitted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, or unit 11. Inserted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, 12. Substituted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, 0.017 13. Substituted vide Finance Act, 2013, w.e.f. 1st day of June, 2013, before it was read as, 5 [ 0.25 14. Inserted vide Finance Act, 2014, 1st day of October, 2014 15 . Inserted vide Finance Act, 2014, 1st day of October, 2014 16. Inserted vide Finance Act, 2014, 1st day of October, 2014 17. Inserted vide Finance Act, 2014, 1st day of October, 2014 18. Inserted vide Finance Act, 2014, 1st day of October, 2014 19. Inserted vide THE FINANCE ACT, 2015 w.e.f. 14th May 2015 20. Substituted vide FINANCE ACT, 2016 , w.e.f. 1st day of June, 2016, before it was read as, 0.017 per cent. 21 . Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-02-2021 22 . Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. ................. before it was read as, 20 [0.05 per cent.] 23 . Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. .................. before it was read as, 12 [0.01] per cent. 24 . Substituted vide Section 162 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 16-08-2024 before it was read as, ​​​​​ 22 [ 0.0625 per cent. ] 25. Substituted vide Section 162 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 16-08-2024 before it was read as, 23 [ 0.0125 per cent. ]