Section 99 - Value of taxable securities transaction - Finance (No. 2) Act, 2004

99. Value of taxable securities transaction.- The value of taxable securities transaction,- 1 [ (a) in the case of a taxable securities transaction relating to an option in securities, shall be- (i) the option premium, in respect of transaction at item (a) of serial number 4 of the Table in section 98; (ii) the 2 [ intrinsic value ] , in respect of transaction at item (b) of serial number 4 of the Table in section 98; ] (b) in the case of a taxable securities transaction relating to a derivative, being futures , shall be the price at which such futures is traded; and (c) in the case of any other taxable securities transaction, shall be the price at which such securities are purchased or sold: Provided that the Board may, having regard to the manner in which taxable securities transactions are settled in a recognised stock exchange or such other factors which may be relevant for the purposes of determining the price of such securities, specify, by rules made by it, the method of determining the price of such securities for the purposes of this clause. 3 [ Explanation . For the purposes of this section, the expression intrinsic value means the difference between the settlement price and the strike price. ] -------------------------------------------- Notes:- 1 . Substituted vide Finance Act, 2008 , before it was read as:- (a) in the case of a taxable securities transaction relating to a derivative, being option in securities , shall be the aggregate of the strike price and the option premium of such option in securities ; 2. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 before it was read as settlement price 3. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019