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Section 98 - Charge of securities transaction tax - Securities Transaction TaxExtract 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 purchase or the seller, specified in the corresponding entry in column (4) of the said Table: TABLE Sl. No. Taxable securities transaction Rate Payable by 1. Purchase of an equity share in a company or a unit of an equity oriented fund, where- (a) the Transaction of such purchase is entered into in a recognised stock exchange; and (b) the contract for the purchase of such share or unit is settled by the actual delivery or transfer of such share or unit. 0.1 per cent. Purchaser 2. Sale of an equity share in a company or a unit of an equity oriented fund where- (a) the transaction of such sale is entered into in a recognised stock exchange; and 0.1 per cent. Seller 3. Sale of an equity share in a company or a unit of an equity oriented fund, where- 0.02 per cent. Seller 2 [4. (a) Sale of an option in securities 0.017 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 0.017 per cent. Seller] 5. Sale of a unit of an equity oriented fund to the Mutual fund. 0.2 per cent Seller ********* Notes: 1. Rates as updated by Finance Act, 2005 2. Entry no. 4 substituted by Finance Act, 2008 w.e.f. 1-6-2008, prior to this it was read as: 4. Sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange. 0.0133 per cent. Seller
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