CHAPTER VIII
MISCELLANEOUS
Amendment of Act 23 of 2004
125. In the Finance (No. 2) Act, 2004, in section 98, in the Table, with effect from the 1st day of June, 2013,—
(i) against Sl. No. 1, under column (2) relating to taxable securities transaction,—
(A) the words “or a unit of an equity oriented fund,” shall be omitted;
(B) in item (b), the words “or unit”, at both the places where they occur, shall be omitted;
(ii) against Sl. No. 2, under column (2) relating to taxable securities transaction,—
(A) the words “or a unit of an equity oriented fund,” shall be omitted;
(B) in item (b), the words “or unit”, at both the places where they occur, shall be omitted;
(iii) after serial number 2 and the entries relating thereto, the following serial number and entries shall be inserted, namely:—
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Sl. No
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Taxable securities transaction
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Rate
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Payable by
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(1)
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(2)
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(3)
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(4)
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"2A
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Sale of a unit of an equity oriented fund, where—
(a) the transaction of such sale is entered into in a recognized stock exchange; and
(b) the contract for the sale of such unit is settled by the actual delivery or transfer of such unit.
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0.001 per cent
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Seller";
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(iv) against Sl. No.4, in item (c), under column (3) relating to rate, for the figures “0.017”, the figures “0.01” shall be substituted;
(v) against Sl. No. 5, under column (3) relating to rate, for the figures “0.25”, the figures “0.001” shall be substituted.
Declaration under the Provisional Collection of Taxes Act, 1931
It is hereby declared that it is expedient in the public interest that the provisions of clauses 76, 77 (b), 91 and 92 of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931(16 of 1931).
Notes on Clauses:
Clause 125 of the Bill seeks to amend section 98 of the Finance (No. 2) Act, 2004 relating to charge of securities transaction tax. It is proposed to amend the Table given under the said section which specifies the rates at which the securities transaction tax shall be charged.
The proposed amendments seek to reduce the rates of securities transaction tax from 0.1 per cent. to zero per cent. in respect of the purchase of units of an equity oriented fund entered into in a recognised stock exchange where the contract for the purchase of such unit is settled by actual delivery. It is further proposed to insert a new serial number 2A and the entries relating thereto, so as to reduce the rate of securities transaction tax from 0.1 per cent. to 0.001 per cent. in respect of the taxable securities transaction of sale of unit of an equity oriented fund of the nature referred to under column (2) of the said Table. It is also proposed to reduce the rate of securities transaction tax from 0.017 per cent. to 0.01 per cent. in respect of taxable securities transactions of derivatives of the nature referred to under the said column (2), in item (c), against serial number 4. It is also proposed to reduce the rate of securities transaction tax from 0.25 per cent. to 0.001 per cent. in respect of taxable securities transactions of the units of equity oriented fund of the nature referred to under column (2) against serial number 5.
This amendment will take effect from 1st June, 2013
