Revision of rates of securities transaction tax by amendment to the Finance (No.2) Act, 2004 (WIDENING AND DEEPENING OF TAX BASE AND ANTI-AVOIDANCE)

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..... in specified securities was introduced vide Finance (No.2) Act, 2004 . As per the provisions of the STT, recognized stock exchanges, mutual funds (having equity oriented scheme), insurance company or lead merchant banker appointed by the company in respect of an initial public offer or an initial offer are liable to collect the tax on specified securities and pay the same to the credit of the Cent .....

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..... growth of derivative (future and option) markets in recent times and trading in such derivatives accounts for a large proportion of trading in stock exchanges. In view of this exponential growth of the derivative markets, it is proposed to increase the said rates of securities transaction tax on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale .....

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